The Punjab government is working towards raising an additional ₹1,000 crore in liquor excise revenue in 2026-27, setting a projected target of nearly ₹12,500 crore for the upcoming financial year. If the target is achieved, excise earnings would have nearly doubled within five years under the Aam Aadmi Party administration, positioning the sector as a key fiscal contributor for the state.

With the Excise Policy for 2026-27 currently under preparation and likely to be announced by the end of February, revenue augmentation remains central to the government’s approach. Officials are expected to hold a final round of discussions shortly to shape the draft policy. Punjab’s excise collections stood at ₹6,254.74 crore in 2021-22, after several years of limited growth. The introduction of a revamped policy in 2022-23 resulted in a sharp surge in revenue, with collections rising by over 40 per cent in that year alone.

For the ongoing 2025-26 fiscal, the state is poised to slightly outperform its revenue target. Against a goal of ₹11,200 crore, collections are estimated to close at approximately ₹11,300 crore by March 31, 2026. Industry representatives said a series of meetings took place in late December between excise officials and stakeholders to gather feedback for the new policy framework. Among the key demands from traders is a restructuring of the existing licensing model. Contractors argue that the current grouping system, valued at roughly ₹40–50 crore per cluster, places considerable financial strain on operators and limits participation by smaller players, potentially leading to concentration of control within a few large entities.

Punjab presently has 207 licensing groups overseeing more than 6,300 retail vends across the state. Officials acknowledged that suggestions, including resizing licence clusters and rationalising quotas for Indian Made Foreign Liquor (IMFL) and Punjab Medium Liquor (PML) to stabilise pricing, are under consideration. However, no final decisions have yet been announced. The government’s stated focus remains on strengthening revenue while maintaining regulatory balance.

Sales Trends and Consumption Patterns

Recent excise data indicates notable shifts in consumption patterns across categories. In 2024-25, sales of Punjab Medium Liquor (PML) touched approximately 80 lakh cases, making it the dominant segment in terms of volume. Meanwhile, Imported Foreign Liquor (IFL) recorded sales of about 2.5 lakh cases during the same period, a dramatic rise compared to figures recorded four years earlier. The trend underscores a steady expansion in demand for premium and imported spirits, even as mass-market segments continue to account for the bulk of volumes.