Diwali is just around the corner, and we're sure you've got your plans set for the festive season. From relishing traditional sweets to hosting cocktail parties at home, the time of celebration is here. But amidst all the excitement, there's a question on everyone's mind: will alcohol prices rise this Diwali? With taxes and duties increasing, it's natural to wonder if your festive drinks will cost more. Will the prices increase? Here's all you must know.
For Diwali 2025, the alcohol prices in India might witness a mixed trend. This means that not all states or cities will experience a price hike, and maybe some will not. This is because of the already increased rates or sudden surge in demand, as these are some important factors that generally affect the prices of alcohol during this festive season.
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Also Read: Liquor Stores Stocking Up 30% More, Anticipating Record-Breaking Sales This Diwali 2025
The state of Maharashtra had already witnessed an increase in excise duty on Indian-made foreign liquor (IMFL) by over 50% earlier this year. As a result, the retail prices were pushed up by over 60% compared to the earlier rates of the same bottles.
Although beer and wine were exempted from this sudden price hike, drinks like country liquor and premium liquor did see a significant increase in their prices. The prices were increased by 15% for country liquor and over 25% for premium ones. Because of this higher excise duty, people in Maharashtra might expect high prices of alcohol during the upcoming Diwali 2025 season.
Other states like Karnataka, Kerala, Uttar Pradesh, and Haryana also hiked alcohol prices in the states by some percentage earlier this year. As many states have increased their excise duties to boost their revenue for the year, people might expect buying alcohol to be a bit heavy on their pockets.
Diwali is known to be one of the peak seasons for alcohol sales, and this is the time when brands also come up with their premium products as well as gifting options. So when there is a surge in demand, the prices tend to increase. Moreover, customers generally move towards premium products, and they already end up paying more.
Though alcohol is exempted from the GST (Goods and Services Tax) rules, the ingredients and inputs like bottles, packaging, and transport do come under GST. So if the price in the market increases steadily, the price of the output also tends to increase.
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Also Read: Is Diwali a Dry Day in India? Here’s the City-Wise Dry Day List 2025
Despite the talks about an increase in alcohol prices prevailing in the market, liquor shops across India are already stocking up about 30% more inventory ahead of Diwali 2025. The reason behind this is that they expect record-breaking sales this Diwali 2025 as compared to last year.
There are sales predictions by big brands that show positive sales growth in this festive season based on their sales last year. The two big reasons behind this forecast are the growing cocktail culture in India, especially among the youth, and a higher disposable income in the hands of consumers due to GST.
Because of already increased prices of alcohol in some states, consumers here will already be paying a higher amount for their alcohol purchase. As brands are coming up with premium gifting options, the enticed customers end up buying them for the festive season. The prices may or may not increase, but the inventories across India have increased, so let's see what the festive season has in store for us!
