Liquor stores run out of imported brands.

PUNE: A severe scarcity of imported liquor brands in the state has sent tipplers into a tizzy. While the current scarcity of imported scotch, wine, vodka and other ready-to-drink spirits has been pitched at 25-30%, sources in the industry cited a 100% shortage of some brands as they have been out of stock for more than a month now.

Sources cited issues concerning price revision of imported brands after the rupee slide and stock valuation stand-off between customs and importing companies as the main causes for the imported liquor market suddenly running dry.

The chief executive officer of a wine-marketing company told TOI that stocks of some imported liquor brands were denied clearance from the customs department due to which some major brands of scotch, vodka, wine and ready-to-drink spirits did not flow into the market. "The market share of these companies - whose stock was held by the customs - within the imported liquor segment is about 50-60%. In case of scotch, this share is 100%, as scotch is not made in India. The 25-30% shortage in imported liquor is across the country as of now," he said.

Ajay Deshmukh, partner in a liquor mart on Bhandarkar road said, "We are facing a crunch in many imported liquor brands currently, major causes being the rupee slide and the time-consuming process of re-registration of brands every year. The rupee fluctuation has compelled importing companies to revise the retail price of imported liquor brands. However, with the daily fall in the rupee value, the companies are holding back this revision." Stocks can be released only after prices of brands are revised.

A senior official from customs and central excise told TOI that after a recent order from the additional commissioner of customs, Mumbai Customs House, the value of liquor being imported was to be increased. He said that authorities at the Jawaharlal Nehru Port Trust, Nhava Sheva (the port that receives most of the imported liquor stock) therefore began implementing the order by increasing the value of liquor being imported. "The importing firms were consequently to pay a higher customs duty because of the increased value of the imports. But since this pinched the importing companies, they stopped their consignments suo motu at Nhava Sheva, hence the scarcity of imported liquor in the state. However, since the customs authorities have taken a stand to implement the order, the companies have started paying duties on the increased prices and are clearing their stocks now," the official said.

Meanwhile, sources in the liquor retail sector said that 50% of imported labels are currently not available in the market. "Many importers are not in a position to finalize new rates of imported liquor due to rupee fluctuation. There has already been a hike in prices of imported liquor a couple of times in the last two years due to the fluctuating rupee. The recent volatility in rupee means that the companies will have to further revise the prices, before which they cannot release new stock," said a retailer.

He added that in Pune, distributors have no stock of some imported brands. "Some companies may also take advantage of the situation by increasing the retail price of stock they already have, which they may have bought at a lower price," he said.

A city-based distributor quoted around 20% shortage of imported brands with him, citing rupee fluctuation and the delays due to the annual processes of brand and label registration as one reason. "Also, recently, the excise department was out of brand roll in its press. Brand roll has to be stuck on the bottle's neck without which the stock cannot be dispatched. Unavailability of brand roll had also led to distributors holding the stock of imported liquor," he said.

Source : timesofindia.indiatimes.com