Himachal Pradesh Allows 30% Of Quota Swap Between Country Liquor And Foreign Liquor

The Himachal Pradesh government has introduced a new sub-rule under its Himachal Pradesh Liquor License Rules on November 11, 2025, with immediate effect. According to it, the rule allows all the liquor contractors to swap up to 30% of their liquor quotas between Indian Made Foreign Liquor (IMFL) and country liquor (CL). This amendment will help in making excise licensing more flexible, efficient, and responsive to the market demand within the state for the financial year 2025-26.

Himachal Pradesh Allows 30% Of Quota Swap 

Before the introduction of this new sub-rule, the liquor contractors had separate and strict quotas for  Indian Made Foreign Liquor (IMFL) and country liquor (CL). Now, under these strict quotas, the license holders could not transfer any of their unused quota from one category to another. 

This led to problems as there was a mismatch between what was available in the region and what the customers wanted, leading to unsold stock. 

The new amendment allows contractors to convert up to 30% of their allotted quota each quarter between IMFL and CL. It is introduced as sub-rule 35A(30) in the Himachal Pradesh Liquor License Rules. 

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How Will This Rule Work?

Under this rule, there are three conditions under which this new sub-rule will be applicable to the contractors. They are as follows:

1. The license holder has to apply for conversion to the Collector (Excise) of the zone that is relevant. 
2. This conversion must be done using the given formula only. This is to ensure that the tax revenues remain balanced. 
3. Last, but most important one. The contractors can apply for a shift every quarter of their quota only when they hold both types of licenses (IMFL and CL). 

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In order to prevent the state from any tax revenue loss, the rule comes with a prescribed formula for quota swap. 

• For swapping Foreign spirit with Country Liquor, the formula is: Required quota multiplied by the division of the license fee of foreign spirit by the license fee of country liquor. 
• For swapping Country liquor with Foreign spirit, the formula is: Required quota multiplied by the division of the license fee of country liquor by the license fee of foreign spirit. 

What Are The Benefits of This New Rule?

Because of the previous strict rule, many times contractors ended up with a lot of unsold liquor inventory. This was because the preference of customers for IMFL or CL varied as per the region. But now with this, if there is no sale for one type, the contractors can swap it with another. They can manage their stock based on the local demand, which leads to better inventory management.  

The conversion is not free in nature. It will charge an additional conversion fee, which can bring in more funds to the state exchequer. Contractors will be able to balance the availability of both types of liquors. This is helpful mainly in the mixed market zones, as the consumption ratios change here frequently. 

Summing Up

Himachal Pradesh’s new 30% interchange rule between the two liquor quotas makes the system more fair and dynamic. It is also very profitable for all the parties involved, like contractors, consumers, and the state government.