Several liquor shops across Jharkhand have shut down operations after struggling to meet steep daily sales targets set under the state’s new excise policy.
According to industry representatives, at least 84 liquor outlets across the state—including some in Ranchi—closed their shutters starting Wednesday. The closures have been linked to financial losses caused by unrealistic sales expectations introduced after the new policy came into effect in September last year.
Subodh Kumar Jaiswal, General Secretary of the Jharkhand Sharab Vyapari Sangh (liquor dealers’ association), explained that each shop was assigned a daily sales target based on its location and expected business potential. However, many outlets failed to achieve these targets, making operations unviable.
He noted that the number of closures could rise further as complete data from across the state is still being compiled. In Ranchi alone, 3 out of 150 licensed shops have already shut down.
Targets vs Reality
Shop owners say the targets were far higher than actual market demand.
In one case, a shop was given a daily target of around ₹1.8 lakh but could only generate sales of about ₹1.2 lakh, resulting in consistent losses. Another outlet in Lalpur had a target of nearly ₹5 lakh per day, but managed sales of only ₹3–3.5 lakh.
Under such conditions, traders argue, continuing operations becomes financially unsustainable.
New Excise Policy Behind the Shift
The situation stems from the Jharkhand Excise Rules, 2025, approved by the state cabinet last year. The policy allowed private players to operate retail liquor shops across the state.
Under this system, a total of 1,343 retail liquor outlets were licensed for a five-year period. Of these, 159 shops sell country liquor, while 1,184 outlets are permitted to sell both country liquor and Indian Made Foreign Liquor (IMFL).
Government’s Stand
Officials from the excise department, however, have offered a different explanation.
Rakesh Kumar, Deputy Commissioner (Excise and Prohibition), stated that these shops were shut because their owners did not renew their licences for the new financial year, after which they were directed to close.
He added that closures have been reported in multiple districts, including clusters of shops in Jamshedpur and Koderma, along with a few in Ranchi, Seraikela, Dhanbad, and Garhwa.
The government has indicated that the process of reallocating these दुकानों (shops) to new operators will begin soon.
Profit Not the Department’s Concern
Meanwhile, Ranchi Assistant Excise Commissioner Uma Shankar Singh made it clear that profitability is not the government’s responsibility.
He stated that shop owners had voluntarily agreed to operate under the new policy and are required to meet their financial obligations to the state. Failure to do so would invite strict action.
Growing Industry Concern
The closures highlight growing tension between policy expectations and ground realities. While the government aims to maximise revenue through structured targets, traders argue that market demand and local conditions must be taken into account to ensure the sustainability of the business.
