Chandigarh drinks 5 times the national average

India sold more than 40 crore cases of Indian Made Foreign Liquor (IMFL) in 2024-25, making it one of the largest and fastest-growing spirits markets in the world. In that crowded national landscape, Chandigarh — a union territory of barely 12.5 lakh people — is placed at rank 22 in absolute sales. Yet adjust those numbers for population, and the picture changes dramatically. Chandigarh emerges as one of the most liquor-intensive territories in the entire country, drinking at a rate that dwarfs the national average and surpasses even the traditionally high-consumption states of the South.

The finding emerges from perusal of data provided by the Chandigarh Administration and compiled by the Confederation of Indian Alcoholic Beverage Companies (CIABC) — the country’s apex body for the alcoholic beverages industry.

The numbers tell a story of a compact, prosperous, urbanised territory with unusually high spending power, a liberalised retail environment and strong regulatory enforcement.

UT excise policy built on three pillars, says DC

Chandigarh’s excise policy is built on three pillars — transparency, accountability and strict enforcement. Digital monitoring of sales and movement has strengthened our ability to detect violations early. Enforcement action has been intensified to prevent illicit trade from eating into both legitimate revenue and public safety, said Nishant Kumar Yadav, DC-cum-Excise & Taxation Commissioner, UT.

India’s IMFL market

According to CIABC data, the national IMFL sales rose from 39.62 crore cases in 2023-24 to 40.17 crore cases in 2024-25 — a growth of 1.38%. The South dominates this market decisively, accounting for roughly 58% of all IMFL sold in the country. Karnataka alone sold 6.88 crore cases, Tamil Nadu 6.47 crore, Telangana 3.71 crore, Andhra Pradesh 3.55 crore and Kerala 2.30 crore.

Among northern states, UP sold 2.51 crore cases (rank 6), Rajasthan 1.37 crore (rank 9) and Haryana 1.18 crore (rank 11). Delhi, despite its size, sold 1.18 crore cases, a decline of about 6% from the previous year. Maharashtra, India’s most populous and economically influential state, sold 2.72 crore cases and is placed at rank 5.

The national and state-level figures cited from CIABC reflect IMFL sales only, which includes whisky, rum, brandy, gin, vodka and other spirits manufactured domestically to international standards. They do not include Imported Foreign Liquor (IFL) or country liquor (CL).

Chandigarh’s figures from the UT Administration, on the other hand, cover all three categories — IMFL, IFL and country liquor — and gives a fuller picture of total consumption in the territory.

Per capita consumption

In absolute terms, states like Karnataka or Tamil Nadu are far ahead of Chandigarh. However, population tells a different story. National IMFL consumption of 40.17 crore cases divided across an estimated 142 crore Indians works out to approximately 0.28 IMFL cases per person per year — the national average.

Chandigarh’s 17.39 lakh IMFL cases (2024-25) divided by its estimated population of 12.5 lakh works out to approximately 1.39 IMFL cases per person — almost five times the national average. When it comes to total liquor consumption of 23.02 lakh cases, Chandigarh’s per capita consumption shoots up to 1.84 liquor cases – more than 6.5 times the national average.

Compare this with the high-consuming southern states. Karnataka, with 6.88 crore IMFL cases and a population of roughly 6.8 crore, records about 1.01 cases per person. Telangana (3.71 crore cases, 3.9 crore population) comes in at approximately 0.95. Tamil Nadu (6.47 crore cases, 7.8 crore population) is at around 0.83. Kerala (2.30 crore cases, 3.6 crore population) records about 0.64. Maharashtra and UP, despite their massive volumes, record low per-capita figures of 0.22 and 0.10, respectively, because of their large population bases.

Beyond IMFL

The numbers become even more striking when all liquor categories are added together. According to data from the Chandigarh Administration, the UT sold more than 23.02 lakh total cases in 2025-26 — comprising 17,39,329 IMFL cases, 1,18,518 IFL cases and 4,44,444 country liquor cases. Against the total population of 12.5 lakh, this works out to approximately 1.84 total cases per person per year.

Against the adult population (15 years and above) of roughly 10 lakh, total per-capita consumption stands at approximately 2.3 cases per adult — nearly 28 bottles per adult annually. Measured against the legally eligible population (25 years and above) of roughly 6.7 lakh, the figure climbs to approximately 3.44 cases per eligible adult — or over 41 bottles per eligible resident every year.

These ratios firmly place Chandigarh among the highest per-capita consuming territories anywhere in India.

Five years of growth: 13 crore bottles and counting

Over the five financial years from 2021-22 to 2025-26 (up to January 31, 2026), Chandigarh’s total liquor offtake across all three categories — IMFL, IFL and country liquor — stood at 1,10,09,027 cases. At 12 bottles per case, that equals approximately 13.21 crore bottles sold in five years, according to the Chandigarh Administration data.

The sharpest annual jump came in 2022-23, when total consumption rose from 19,48,149 cases to 22,59,259 cases — a surge of nearly 16%. This was driven by excise policy recalibration and competitive vend auctions that year. Consumption has remained above 22 lakh cases annually since then, stabilising at a high plateau.

For the current financial year 2025-26, consumption data up to January 31 already stands at 23,02,291 cases — suggesting the full-year figure could comfortably exceed 24 lakh cases if the trend holds through February and March.

In the CIABC data for the period from April to December in 2025-26, the national IMFL sales for the same nine-month period totalled 32.09 crore cases.

Rs 3,974 crore revenue in 5 years

The rise in consumption has delivered substantial fiscal returns to the UT Administration. The total excise revenue over five years from 2021-22 to 2025-26 (up to January 31) has crossed Rs 3,974 crore, according to official Chandigarh Administration data.

Year-wise, excise revenue stood at Rs 724.60 crore in 2021-22, climbed sharply to Rs 863.37 crore in 2022-23 — the best year in the five-year window — before dipping to Rs 738.53 crore in 2023-24. It recovered to Rs 801.14 crore in 2024-25 and has already reached Rs 846.66 crore in 2025-26 up to January 31, 2026, indicating that the current year is on course to set a new high.

Of the major revenue heads, licence fees from retail sale vends (L-2/L-14A) remain the single largest contributor. In the current financial year (up to January 31), licence fees from vends alone have yielded Rs 482.71 crore. Excise levies — comprising excise duty, import fee, permit fee and extra licence fee paid by licensees — contributed Rs 272.18 crore. Assessment fees paid by retailers added Rs 33.24 crore, while licence fees from other licences, registration label fees, participation fees and miscellaneous heads contributed the balance.

Excise revenue has consistently been one of the most reliable non-GST revenue streams for the UT.

Competitive auctions, rising bids

Chandigarh’s liquor retail network operates through a system of licensed vends that are auctioned annually.

The UT has operated between 84 licence units (representing 97 vends) in 2024-25 and 97 vends in the current year 2025-26. Allotment is competitive, with vend clusters auctioned to the highest bidder above a declared reserve price.

In the current financial year 2025-26, auction data up to November 30, shows 97 vends with bids totalling Rs 529 crore against a reserve price of Rs 414 crore — a premium of 28.05% over reserve price. This is the highest auction premium in five years, reflecting strong investor confidence in Chandigarh’s liquor retail market.

The costliest vend in 2025-26 is at Palsora village, which attracted a bid of Rs 14 crore against a reserve price of over Rs 10 crore, making it the most-prized retail liquor location in the city for the second time in three years. A vend at the Sector 25 market was the cheapest allotment at over Rs 2,08,51,000 against a reserve price of Rs 2,08,21,455.

Enforcement: Violation cases doubled

A significant aspect of Chandigarh’s excise management has been the steady intensification of enforcement.

Breach cases — violations of laws and regulations governing the manufacture, possession, sale, transport and taxation of excisable goods — have risen sharply over five years. In 2021-22, a total of 59 breach cases were registered across retail sale vends and suppliers (53), bars (4) and bottling plants (2). In 2024-25, the total breach cases more than doubled to 114 — the highest in five years — comprising 102 cases at retail vends and suppliers, 11 at bars and one at bottling plant.

In the current financial year 2025-26, enforcement action has remained aggressive, with 78 breach cases already registered at retail vends and suppliers alone (partial data available), against a penalty recovery of Rs 13 lakh so far.

Data sources: Chandigarh Administration (excise revenue, vend and enforcement data, 5-year consumption figures); Confederation of Indian Alcoholic Beverage Companies (national IMFL market data, state-wise sales). Population estimates used for per-capita calculations are indicative and sourced from Census projections.