Maharashtra Hikes Liquor Duty by 50%, Popular Whisky Brands Surge Sharply
Bombay HC Halts 10-Day Liquor Ban In Pune
Prices of popular whisky brands surge sharply as state targets ₹14,000 crore in annual excise revenue
In a move expected to significantly raise liquor prices across the state, the Maharashtra government has hiked the excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol by 50%. The decision, approved by the state cabinet, is part of a broader strategy to increase state revenue, with a projected boost of ₹14,000 crore annually.
The revised duty structure increases the excise on IMFL from three times the manufacturing cost to 4.5 times. This specifically affects products with a manufacturing cost of ₹260 per bulk litre. Similarly, the duty on country liquor has been increased from ₹180 to ₹205 per proof litre. The government has also introduced a new category, Maharashtra Made Liquor (MML), to further diversify its excise sources.
This policy change has already triggered a sharp rise in retail prices. As older stocks at wine shops are depleted, consumers are now paying significantly more for new batches of liquor arriving at revised rates.
One of the biggest impacts is seen in popular whisky brands. Royal Stag, considered the most widely consumed whisky in the state, including Mumbai, has seen a substantial increase. A one-litre bottle of Royal Stag, previously available at ₹1,050, is now priced at ₹1,400, an increase of ₹350. Similarly, Oxsmith Silver has jumped from ₹935 to ₹1,370, and McDowell’s has risen from ₹640 to ₹900.
Premium brands have also not been spared. A one-litre bottle of Blender’s Pride, which earlier cost ₹1,900, is now being sold at ₹2,000. Oxsmith Gold has increased from ₹1,450 to ₹1,600.
The decision has evoked mixed reactions in the market. While some view it as a necessary step for revenue generation, others are concerned about the affordability of even commonly consumed liquor brands. As one retailer in Mumbai remarked, “The price rise has hit all segments. There’s hardly any brand left untouched. Customers are surprised and disappointed.”
With the revised duties now in effect, Maharashtra joins a growing list of states recalibrating alcohol taxation to meet fiscal demands.
