Lucknow: Consumers of premium imported liquor may soon get a reason to cheer. Benefits of the India-UK Comprehensive Economic and Trade Agreement (CETA) will be passed on to consumers in Uttar Pradesh from Oct 10, with several top-shelf liquor brands, including premium Scotch whiskies sourced from the UK, set to become cheaper at retail outlets.UP excise department has already finalised the revised rates of Diageo-owned Johnnie Walker brands, while those of the Pernod Ricard line-up, such as Chivas Regal, Ballantine’s, Jameson, Absolut, among others, are being worked out. The prices are going to be revised downwards by 5% to 15%.Officials clarified that the price of only the brands that are being sourced from the UK through the seaports (bottled in origin that are brought into the country through shipping vessels) would be impacted, while the MRP of the ones that are being bottled in the country (such as Black & White, Justerini & Brooks, Black Dog Black and Gold) would remain unaffected.Effective from July 15, under CETA, customs duty on UK-based alcoholic beverages was slashed from 150% to 75%. But since customs duty accounts for only a portion of the final maximum retail price that is deduced after considering multiple other factors, the benefits being passed on to the end consumer would be limited to 15%.Meanwhile, managing the demand and supply balance is emerging as a major challenge for the department, with retailers unable to source the imported brands.Excise commissioner Adarsh Singh said measures are being taken to ensure stakeholders are unable to fleece the customers once the new stock reaches the retail shops.Officials are apprehensive about delayed sale of the existing stock with the retailers once the news about the new rates gets publicised.“Withdrawing existing stock is not an option as excise duty has already been paid. And making sure that each and every imported bottle gets consumed before the new stock hits the retail shelves is just impossible. Hence, we are taking measures to safeguard the liquor patrons,” said an officer.The department would make it binding on the retailers to put up boards and posters to create awareness among customers. The customers would be urged to cross-check the MRP by scanning the QR code pasted on the bottle.On the other side of the spectrum, domestic manufacturers have started approaching state govt to take a fresh look into the duty structure so that they are able to compete with established foreign brands.Managing director of Allied Blenders and Distillers, Amar Sinha, said: “Consumers will benefit in terms of reduction in price in the range of Rs 200 to Rs 400 on popular foreign brands (750ml) if they decide to pass on the benefit of duty reduction vide the UK India FTA. As an industry stakeholder I would like the point out that margins of the domestic players are already under pressure because of inflation and prolonged West Asia crisis. My appeal to govt would be to provide a level playing field to all the players vis a vis foreign brands as some states provide unfair local tax advantages to BIO brands.”The excise commissioner said the concerns of the distillers and manufacturers from UP and other parts of the country will be evaluated.“We are already working on the excise policy for the next financial year. We will go through their representation and take a final call after deliberations if required,” the official said.In the changed scenario, the 750-ml bottles of Red Label, Black Label, Double Black, Gold Label and Blue Label, which are being sold at MRPs of Rs 1,910, Rs 3,080, Rs 3,770, Rs 5,090 and Rs 15,400, would be available for Rs 1,740, Rs 2,830, Rs 3,370, Rs 4,600 and Rs 14,460 respectively.
