Contractors can now adjust stock quarterly based on market demand
The Himachal Pradesh government has introduced a major change in its excise policy, allowing liquor contractors to convert up to 30% of their allotted stock between Indian Made Foreign Liquor (IMFL) and Country Liquor (CL) each quarter. The change aims to help contractors balance their inventory according to market demand and local consumption trends.
The new rule—added as a sub-rule under the Himachal Pradesh Liquor License Rules, 1986—gives the Collector (Excise) of each zone the authority to approve such conversions for the financial year 2025–26.
According to the notification issued by the State Taxes and Excise Department, the conversion will be permitted at a rate of ₹55 per proof litre (PPL). The rule ensures that conversions between the two categories maintain revenue neutrality by applying a set formula based on respective license fees.
For example:
From IMFL to Country Liquor: Required Quota × License Fee of IMFL ÷ License Fee of Country Liquor = Converted Quota
From Country Liquor to IMFL: Required Quota × License Fee of Country Liquor ÷ License Fee of IMFL = Converted Quota
The amendment was introduced by Dr. Yunus, Financial Commissioner (Excise), under the powers granted by the Himachal Pradesh Excise Act, 2011, and relevant provisions of the Punjab Excise Act, 1914, which still apply in certain parts of the state. The decision was earlier approved by the Cabinet chaired by Chief Minister Sukhvinder Singh Sukhu.
Officials said this move provides much-needed flexibility to liquor contractors who operate both IMFL and CL outlets under the same ownership. Earlier, contractors were bound to sell only within their licensed category, which often led to unsold stock and imbalanced distribution.
A senior excise official noted, “This policy will help optimize stock usage, reduce wastage, and potentially boost state revenue through the conversion fee—especially in areas where consumption patterns between IMFL and country liquor differ significantly.”
