Shares of United Spirits Ltd fell sharply by 5.40% to ₹1,523 on Wednesday after the Maharashtra government approved a steep hike in excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol. The decision is expected to significantly raise liquor prices in the state, impacting demand and profitability for major beverage players.
The Maharashtra cabinet raised excise duty on IMFL by 50%—from three times the manufacturing cost to 4.5 times—particularly affecting products with a manufacturing cost of ₹260 per bulk litre. Country liquor duty was also increased from ₹180 to ₹205 per proof litre.
Officials anticipate the price of IMFL to rise from ₹115–₹130 to ₹205, and premium liquor brands could see a surge from ₹210 to ₹360 per unit. Country liquor prices are likely to jump from ₹60–₹70 to ₹80 for a 180ml bottle.
The move, projected to boost state revenue by ₹14,000 crore annually, has triggered concerns among alcohol companies and traders over potential loss in volume sales, higher smuggling risk from less-taxed states, and weakened consumer sentiment.
The newly introduced Maharashtra Made Liquor (MML) category is aimed at boosting local production, but will not include national or foreign brands.
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