Liquor stocks tumble as Maharashtra approves excise duty hike; United Spirits drops nearly 7%

New Delhi: Shares of breweries and distilleries companies declined on Wednesday after the Maharashtra cabinet approved revenue-boosting changes in the excise department, including a liquor duty hike.

United Spirits dropped 6.63 per cent, Tilaknagar Industries dipped 4.83 per cent, Allied Blenders and Distillers tanked 4.57 per cent, Radico Khaitan declined 3.30 per cent, United Breweries slipped 0.40 per cent and Globus Spirits (0.14 per cent) on the BSE.

As per the cabinet's decision, the excise duty on Indian Made Foreign Liquor (IMFL) will be raised from three times to 4.5 times the declared manufacturing cost (up to Rs 260 per bulk litre), while duty on country liquor will rise from Rs 180 to Rs 205 per proof litre.

The state has also introduced a new category, grain-based Maharashtra Made Liquor (MML), to be produced exclusively by local manufacturers. MML brands will require new registrations.