ISWAI commends state govts for implementing progressive excise policies

Vijayawada: The International Spirits and Wines Association of India (ISWAI) praised state governments for their progressive excise policies aimed at modernising retail formats, increasing revenue, and enhancing consumer experiences.

Key innovations include Uttar Pradesh’s composite retail formats, Andhra Pradesh’s privatised model, Rajasthan’s premium mall-based stores, and Madhya Pradesh’s single-bottle billing system, among others.

These initiatives are reshaping the alcohol retail landscape across the country. Sanjit Padhi, CEO of ISWAI, remarked, “The reforms signal a paradigm shift in the alcobev sector, reflecting the commitment of state governments.

These policies are improving compliance and transparency while fostering sustainable, consumer-focused growth.” He highlighted Uttar Pradesh’s impressive revenue growth from Rs 24,000 crore in FY 18/19 to a target of Rs 55,000 crore in FY 25/26, attributing this success to ISWAI members, who contribute over 55% of the state’s IMFL revenue. New outlets and investments in retail infrastructure are expected to enhance the consumer experience further.

The reforms also stabilise vendor operations by offering two-year licenses through an e-lottery system, capping ownership at two outlets, and promoting fair competition. Padhi added, “We are seeing the rise of a modern alcobev ecosystem that aligns with global best practices, providing consumers with quality brands and deterring counterfeit products.”

In Andhra Pradesh, the privatised retail model supports 3,736 liquor vends and has led to a Rs 1,800 crore increase in revenue. Padhi also stressed the need for deregulation in pricing, stating that market forces should dictate prices to prevent businesses from pricing themselves out of the market.

ISWAI advocates for removing pricing controls to encourage investment and enhance contributions to state revenues. As more states adopt these successful practices, India’s alcobev landscape will continue to evolve toward a balanced and consumer-centric ecosystem.