Maharashtra’s recent hike in excise duty on Indian Made Foreign Liquor (IMFL) by 50–60% is being seen as a long-overdue reset rather than a sudden shock, according to the Brewers Association of India on 13th June.

Vinod Giri, the association’s Director General, said the revision addresses a decade-old mismatch. While beer taxes went up 32% over the last 10 years, IMFL duties rose only 9%. This made beer, a lower-alcohol beverage, more expensive than spirits—an uncommon scenario globally.

With this correction, beer could become more affordable in comparison. This encourages a healthier shift in consumer preferences. Giri expects IMFL’s high growth rate of 7% CAGR in the state to ease to the national average of 3%. Meanwhile, beer, which saw just 1% CAGR, could grow closer to 9–10%.

The government is also introducing a new ‘Maharashtra Made Liquor’ category. It aims at creating a mid-range option between country liquor and IMFL. This segment is projected to capture a 10–20% market share and enhance product quality.

The state aims to generate an additional Rs 14,000 crore in revenue from this tax overhaul. At the same time, falling raw material costs, such as barley and glass, are likely to improve margins for brewers going forward.

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