Liquor price war in NCR: Shops in Gurugram respond as discounts resume in Delhi

The Delhi government excise department’s move to permit private liquor shops to offer discounts of up to 25 percent on MRP has had ripple effects in the neighbouring millennium city. With liquor in Delhi becoming cheaper, vendors in Gurugram have moved to further slash prices in order to stay competitive with the national capital’s rates.  

Liquor shops in Delhi had been banned from offering discounts back in February due to Covid protocol violations and unhealthy market practices. Now discounts are back on and retailers in Delhi are ensuring that customers who used to travel across the state border know. In pretty direct marketing, shops have even put ad banners telling customers that they need not travel to Gurugram anymore for cheaper liquor.  

Jittery with Delhi’s counterparts having more competitive pricing now, liquor vendors in Gurgaon are now giving new offers and discounts. The price war kicking up again began last year when Delhi’s shops were allowed to offer discounts as part of the new excise policy in the national capital. At that time too, shops in Gurugram had responded making liquor available to customers at cheaper prices.

Delhi’s shops were restricted from offering discounts on February 28 and Gurugram claimed the spoils and business. However, with discounts being allowed again by the excise department, the price war has been retriggered.

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The prices in Gurugram are coming close to bottoming out, Vinod Giri, Director General, Confederation of Indian Alcoholic Beverage Companies was quoted by a leading daily. He said that further big price cuts are not expected in Gurugram and Haryana because the discounts that liquor retailers can offer also carry limits which cannot be breached, even in situations where margins are low.