Liquor Shortage Hits Pune Amid Excise Duty Hike, Retailers Struggle to Meet Demand
Pune | August 3, 2025 – A widespread shortage of Indian-Made Foreign Liquor (IMFL) has struck Pune, following a sharp rise in excise duties by the Maharashtra government. Retailers report a 30–40% drop in the availability of major liquor brands, leading to empty shelves, disrupted sales, and a visible shift in consumer preferences.
Distributors and retailers attribute the crisis to a mix of increased prices, halted production, and logistical bottlenecks. With several popular IMFL brands either unavailable or unaffordable, consumers are now gravitating toward cheaper alternatives — primarily country liquor.
“There’s a clear shift. Many who used to buy lower-range IMFL brands are now choosing country liquor,” said a member of the Pune District Wine Merchants’ Association.
Retailers on the ground confirm the shortage has persisted for nearly a month. “Only limited stock of 180 ml bottles is arriving. Larger pack sizes like 750 ml, 90 ml, and 1 litre are completely missing. Customers ask daily for certain brands, but we have nothing to offer,” said a local wine shop owner.
Compounding the issue, earlier trade incentives such as bulk discounts and promotional schemes have been withdrawn, squeezing retailer margins. “Earlier, we earned a 12% profit margin — now we barely manage 7%,” one shop owner noted.
The trouble began after the state government raised excise duties by over 50%. This forced liquor companies to rework their maximum retail prices (MRPs), leading to production halts and delays in re-registration, some lasting over three weeks.
Multinational liquor firms also reportedly slowed production in June due to quarterly inventory strategies — further compounding the disruption.
“We had no incoming stock for 20 days. Now we receive barely 20–50% of what’s needed — and not all pack sizes are available,” said a senior distributor. “Daily-use brands in the lower and mid-range segments are the worst affected.”
He estimated that 20–25% of regular IMFL buyers have switched to cheaper substitutes like country liquor or local wine.
Retailers, already burdened with steep operational costs, say the situation is unsustainable. “The annual shop license itself costs ₹22 lakh, rising 10% each year. Add rent, electricity, staff wages — margins are shrinking fast while manufacturers continue to profit,” said a retailer.
Distributors echo the concern, highlighting the scramble to restock shelves as the festive season nears. “As soon as stock arrives, it disappears. We’re not even close to meeting demand,” one added.
Unless supply chains normalize quickly, Pune could see worsening shortages — especially during upcoming festivals — leaving both consumers and retailers in a bind.
