Chandigarh: A marginal increase in liquor prices is on the cards with the Chandigarh administration approving the new excise policy for 2026-27.
Departmental stores will again be able to sell foreign-made liquor. The L-10B licence will be reintroduced to allow sale of liquor through organised departmental stores, enhancing consumer convenience, particularly for women, senior citizens, and other consumers.
The administration kept the total number of retail sale liquor vends operating in the city unchanged at 97. Total reserve price for licensing units for the Excise Policy, 2026–27 was fixed at Rs 454.35 crore, which is only marginally higher than under the outgoing policy at Rs 443.51 crore.
A marginal increase of up to 2% in ex-distillery price (EDP) was proposed for country liquor, IMFL, Indian beer, and Indian wines, considering inflation and rising raw material costs. This increase will not apply to imported wines, imported beer, and imported foreign liquor (IFL).
Any proposal for an increase in EDP/EBP will be considered only after completion of the first quarter of the Excise Policy Year 2026–27, subject to uninterrupted supply of brands, said a UT spokesperson.
The requirement that custom approved bonded warehouses must be located within UT Chandigarh for obtaining L-1F and L-1DF licences was relaxed. Such warehouses may now be located anywhere in India, and the requirement of one year prior experience was also removed.
To ensure proper enforcement, all custom approved bonded warehouses operating in UT Chandigarh will be required to register on the excise portal and submit monthly details of import and export consignments on the portal by the 7th day of the succeeding month.
The quota of country liquor, IMFL, and IFL for retail licensing units was kept unchanged, maintaining a revenue-neutral position compared to the Excise Policy Year 2025–26.
In case of failure to deposit the required licence fee, the concerned L-2/L-14A licence, as well as all other licences held by the licensee, may be cancelled, and recovery proceedings will be initiated as per law.
Bar licensees will procure liquor from the nearest two retail vends (L-2/L-14A). If both vends belong to the same entity, procurement may be made from the third nearest vend.
Cow Cess will continue at existing rates, ie, Rs 0.50 per bottle of 750 ml country liquor, Rs 0.50 per bottle of 650 ml beer, and Rs 1 per bottle of 750/700 ml whisky.
Where retail vends operate in govt or administration-owned premises, the licensee will pay rent directly to the department concerned and complete all related formalities.
Minimum retail sale price of beer will be revised and fixed range-wise based on EBP.
BOX1: What Stakeholders Say
Darshan Singh Kler, president, Chandigarh Wine Contractor Association, said, "We welcome the policy. Now, the administration must also ensure that there is no cartelisation, as happened last year. Cartelisation adversely impacted the department's revenue and also the liquor trade in the city."
"The excise policy for the financial year 2026-27, introduced by the excise department on Friday, is a welcome step in keeping the interest of the common customer and the liquor contractors. In the outgoing policy year (2025–2026), 25% of liquor shops closed due to non-payment of licence fees, and the department is facing revenue loss this year. The excise department took all the stakeholders into confidence while making the Excise policy for the year 2026-27," said Sachit Jaiswal, advocate, excise and taxation.
A UT spokesperson said, "The policy aims at strengthening regulatory oversight, improving ease of doing business, ensuring better enforcement, and safeguarding govt revenue."
BOX2: Key Changes
Departmental stores will again be able to sell foreign-made liquor: The L-10B licence will be reintroduced to allow the sale of liquor through organised departmental stores, enhancing consumer convenience, particularly for women, senior citizens, and other consumers.
Definition of Family: A clear definition of "family" was introduced in the policy to avoid ambiguity and potential litigation.
Revision in Security Amount: The security amount for retail vend licensees was increased to 17% of the bid amount.
Licence Fee Payment: Retail liquor vend licensees will pay the licence fee, along with applicable interest, once by the 15th of the succeeding month, replacing the earlier system of 2 instalments.
Working days for bottling plants increased from five to six days (Monday to Saturday), with provision for overtime operations on gazetted holidays.
BOX3: Stricter Compliance and Safety Measures
Installation of CCTV cameras at additional godowns of retail vends will be mandatory, with provision for live feed access to the department
Provisions related to advertisement of liquor by licensees were made more stringent, and non-compliance will attract penalties. Provisions regarding installation of CCTV cameras at bottling plants were also strengthened
Security personnel will be deputed at bottling plants and CCTV control rooms, with salaries borne by the department
GPS tracking of transport vehicles: All vehicles used for transportation of liquor for import, export, or local supply must be equipped with GPS tracking systems
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