Why Chandigarh Has Record Liquor Supply but Still Rejects Liquor Sales in Kirana Stores

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Chandigarh is one of those cities that often surprises you when you look beyond the surface. On paper, it is calm, planned, and orderly. But when it comes to alcohol consumption and revenue from excise, the city tells a completely different story.

This Union Territory has quietly become India’s biggest per-capita consumer of liquor, even though its population is just around 12.5 lakh. Over the past few years, residents have consumed crores of bottles, and the numbers keep rising. In fact, the average drinking level here is estimated to be nearly five times the national average. Yet, what makes the situation even more unusual is not just how much the city drinks, but how it sells it.

Despite having one of the most organised retail environments in the country, Chandigarh still depends heavily on traditional liquor vends. This year alone, the city has 97 licensed liquor vends operating—one of the highest in recent years. These outlets dominate the entire supply chain, handling almost all retail sales. The system is so structured that liquor availability is never really a problem, and revenue keeps breaking records every year.

In 2025–26, excise collections crossed the ₹1,000 crore mark for the first time, setting a new benchmark for the administration. Officials are already projecting even higher revenue in the coming year. On the surface, it looks like a highly successful model—strong demand, efficient collection, and steady growth.

But when the administration tried to modernise the system and bring liquor sales into supermarkets and departmental stores, the response was almost silent.

A special licence, known as L-10B, was reintroduced to allow departmental stores to sell imported liquor, wine, and beer alongside regular groceries. The idea was simple: make purchasing more convenient and socially comfortable, especially for customers who hesitate to visit liquor vends. In many ways, it was meant to align Chandigarh with modern retail trends seen in other global cities.

However, reality played out differently. Out of hundreds of eligible stores, only three agreed to take the licence. Most big retailers backed out.

The reasons are not as simple as they seem. The first issue is cost. The licence fee is around ₹30 lakh per year, which is a significant burden unless alcohol sales become a major revenue driver. For most grocery and departmental stores, liquor would only be an additional category, not the core business. The risk, they feel, is too high compared to the return.

The second reason is social perception. Many store owners are uncomfortable with the idea of placing alcohol bottles next to daily essentials like food items, snacks, and household goods. They worry it could change the family-friendly image of their stores. Some also fear losing regular customers who may not want to shop in an environment where alcohol is visibly available.

Because of these concerns, most retailers decided to stay away, leaving the traditional vend system untouched.

At the same time, there is no shortage of alcohol supply in the city. In fact, availability has never been higher. With nearly 97 vends operating, Chandigarh has one of the densest liquor retail networks in the country. For a city of its size, this translates into roughly one vend for every 13,000 residents.

The demand side is equally strong. Chandigarh’s unique mix of government employees, defence personnel, students, and professionals creates a steady consumer base. Add to that relatively higher disposable incomes and an active social culture, and the result is consistent high consumption. The city also benefits from its location, sitting close to Punjab and Haryana, where drinking culture is already deeply rooted.

All of this has turned liquor into one of the biggest sources of revenue for the administration. Over the past five years, excise earnings have crossed several thousand crore rupees, making it a crucial part of the city’s financial structure. Officials have also strengthened monitoring systems with digital tracking, GPS-enabled transport, and strict stock verification to reduce leakages and improve transparency.

Still, despite policy changes and modernisation efforts, Chandigarh’s liquor retail model remains largely unchanged. The vend system continues to dominate, while supermarkets and kirana stores stay on the sidelines.

It creates a strange contrast: a city that consumes like a metro, earns like a high-performing state, but still sells liquor like it did years ago.

And for now, that balance seems to be working—efficient for the government, familiar for businesses, and unchanged for the people who continue to line up at vends across the city every day.