Chandigarh Administration Greenlights New Excise Policy for 2026-27
The Chandigarh administration has officially approved the new excise policy for the financial year 2026-27, setting the stage for a marginal increase in liquor prices across the city. This policy reintroduces the sale of foreign-made liquor through departmental stores, marking a significant shift in retail accessibility for consumers.
Key Policy Changes and Price Adjustments
Under the newly sanctioned policy, the total number of retail liquor vends in Chandigarh remains unchanged at 97. The reserve price for licensing units has been fixed at Rs 454.35 crore, a slight increase from the previous policy's Rs 443.51 crore. Notably, a marginal hike of up to 2% in the ex-distillery price (EDP) is proposed for country liquor, Indian Made Foreign Liquor (IMFL), Indian beer, and Indian wines. This adjustment accounts for inflation and rising raw material costs, though it will not affect imported wines, beers, or foreign liquor.
Any further proposals for EDP or ex-bonded price (EBP) increases will only be considered after the first quarter of the 2026-27 excise year, contingent on uninterrupted brand supply, as stated by a UT spokesperson.
Enhanced Consumer Convenience and Regulatory Easing
A major highlight of the policy is the reintroduction of the L-10B licence, permitting organised departmental stores to sell liquor. This move aims to boost consumer convenience, particularly benefiting women, senior citizens, and other shoppers. Additionally, the requirement for custom approved bonded warehouses to be located within UT Chandigarh for L-1F and L-1DF licences has been relaxed; they can now be situated anywhere in India, with the prior one-year experience mandate also removed.
To ensure robust enforcement, all such warehouses operating in Chandigarh must register on the excise portal and submit monthly import-export details by the 7th of the following month.
Stricter Compliance and Safety Measures
The policy introduces several stringent compliance rules. Installation of CCTV cameras at additional godowns of retail vends is now mandatory, with live feed access provided to the department. Advertisement regulations for licensees have been tightened, with penalties for non-compliance. Security personnel will be deputed at bottling plants and CCTV control rooms, funded by the department, and all transport vehicles for liquor must have GPS tracking systems.
Other changes include an increased security amount for retail vend licensees to 17% of the bid amount, a revised licence fee payment schedule requiring a single payment by the 15th of the succeeding month, and extended working days for bottling plants from five to six days per week.
Stakeholder Reactions and Revenue Considerations
Darshan Singh Kler, president of the Chandigarh Wine Contractor Association, welcomed the policy but urged the administration to prevent cartelisation, which previously impacted revenue and trade. Advocate Sachit Jaiswal noted that the policy balances the interests of common customers and contractors, addressing past issues like shop closures due to non-payment of fees.
A UT spokesperson emphasized that the policy aims to strengthen regulatory oversight, improve ease of doing business, ensure better enforcement, and safeguard government revenue. The quota for country liquor, IMFL, and imported foreign liquor remains unchanged, maintaining a revenue-neutral stance compared to the 2025-26 excise year.
In case of licence fee non-payment, relevant licences may be cancelled, with recovery proceedings initiated as per law. Bar licensees must procure liquor from the nearest two retail vends, with provisions for alternative sources if both belong to the same entity. Cow Cess rates continue unchanged, and minimum retail sale prices for beer will be revised based on EBP.
