Pricier Liquor Set to Lighten Maharashtra Duty Hike Blow

Indian-made foreign liquors will attract duties 4.5 times their manufacturing costs, up from three times now

- Abhinaba Saha

Shares of whisky to vodka makers have tumbled up to 8% since Tuesday after Maharashtra hiked the excise duty on hard liquor for the first time in 14 years, making it up to 60% costlier in the state. But the impact may be short-lived as demand for premium alcohol rises, say analysts.

"Young consumers are mainly driving this premiumization," Naman Shah, an independent consumer sector analyst, told Mint. "The growing popularity of cocktail culture and demand for curated experiences have made them less sensitive to price hikes. Alcohol is not a sin anymore. People want to taste luxury."