Chandigarh, Mar 13: Facing losses for the past two years, the Chandigarh excise department has reduced the reserve prices for most liquor vends ahead of the 2025-26 financial year. The e-auction process begins on March 13, with financial bids set to open on March 21.
The Union Territory has struggled to meet revenue targets due to Punjab’s excise policy, which imposes only a 1% excise duty and VAT. In contrast, Chandigarh charges an excise duty between ₹66 and ₹377 per proof litre, with VAT at 12.5%. This has allowed Punjab’s liquor vendors to enjoy better profit margins, despite liquor prices being slightly higher than in Chandigarh.
A senior excise official said the department hopes for a better response this year. “We have kept the participation fee at ₹2 lakh and have not increased liquor rates,” the official mentioned.
Over the past three years, the reserve price for liquor vends has steadily declined. Vends on the Chandigarh-Punjab border, once auctioned for up to ₹13 crore, now sell for ₹8-9 crore. In 2024-25, 12 vends remained unsold, and the department collected only ₹800 crore—falling short of its ₹1,000 crore target. For 2025-26, the revenue target has been reduced to ₹800 crore.
The Dhanas liquor vend, historically the most expensive, has also seen a sharp decline. In 2021-22, it fetched ₹11.55 crore, rising to ₹12.78 crore in 2022-23. However, in 2023-24, no bids were placed despite a reserve price of ₹11.53 crore, forcing its closure for the entire year. It was auctioned for ₹9.17 crore in 2024-25, and the reserve price for 2025-26 has been set at ₹8.71 crore.
Wine Contractors’ Association president Darshan Singh Kler criticized the administration’s approach. “Officials refuse to acknowledge the growing number of unsold vends and the struggles vendors face. We proposed several measures to revive the liquor business, but they were ignored,” he said.
Kler pointed out that Punjab, by revising its policy, has increased excise revenue from ₹6,500 crore to ₹10,500 crore, while Chandigarh’s earnings continue to drop. As a result, many liquor contractors have moved their businesses from Chandigarh to Punjab, he added.
