Mumbai9 minutes ago
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McDowels Whiski -making company United Spirits, ie, USL was the company of Vijay Mallya earlier. It was bought by British Licker company Diazio when Mallya was bankrupt.
The shares of liquor companies are declining today i.e. on June 11. From McDowels Whiski -making company United Spirits to Alide Blenders and Dustlers and Radico Khaitan, shares of major liquor companies are trading up by 6%.
On the other hand, the shares of Sula Wineyards, GM Bruge and Som Distiller are up to 12%. The reason for this rise in prices is that investors are hoping that these companies will benefit from the announcement of a new category of liquor made in Maharashtra.
Excise duty increased by 50%, hence shares fell
The Maharashtra government has increased excise duty on foreign liquor (IMFL) in India by 50%, due to which the shares of liquor companies have declined. Excise duty in the state was three times the cost of making it, which was increased to 4.5 times. This will make alcohol expensive.
Especially the products whose manufacturing cost is ₹ 260 per bulk liter, it will be applicable to them. The duty of indigenous liquor has also increased from ₹ 180 to ₹ 205 per proof liter. This decision is expected to increase the state’s annual excise earnings by about ₹ 14,000 crore.
IMFL and premium foreign liquor prices will increase by 50%
- The bottle of 180 ml indigenous liquor will now be at least ₹ 80, which was ₹ 60-70 earlier.
- The price of foreign liquor manufactured in India will increase from Rs 115-130 to Rs 205.
- Premium foreign liquor can now be Rs 360 instead of Rs 210.
- The new initiative of Maharashtra Made Licker MML will be Rs 148.
The aim of the newly declared Maharashtra Made Licker (MML) category is to pay a distance between indigenous liquor and IMFL. It will be alcohol made of grain, and it will include only products that are made and registered in Maharashtra. National or foreign brands will not be eligible for this.
MML will apply tax structure like indigenous liquor, but it will be sold only through FL-2 and FL-3 licenses. The government estimates that the current size of this segment is 5-6 crore liters, which can increase to 10-11 crore liters, and this can bring an additional revenue of up to Rs 3,000 crore.
Maharashtra is the highest tax state in the country
Maharashtra was already the highest tax state in the country in this industry. This new decision is likely to worsen the situation. Due to the high price of liquor in a particular state, smuggling of liquor increases from low tax states or neighboring states.
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