Jharkhand Liquor Shops Shut Down: High Sales Targets Blamed for Closures

Ranchi: At least 84 liquor shops across the state, including the city, downed their shutters from Wednesday, citing losses due to a very high daily sales target fixed by the excise and prohibition department after implementation of the new excise policy in Sept last year.

General secretary of Jharkhand Sharab Vyapari Sangh (liquor dealers’ association), Subodh Kumar Jaiswal, said that under the new excise policy, all liquor shops across the state were given a daily sales target, based on their locations and business potential.

“But many shops could not meet the target and they have decided to close down. As per information received on Wednesday, 84 shops across the state have closed down. The number is likely to increase after we receive consolidated data,” Jaiswal said.

Jaiswal added that in Ranchi, 3 out of the total 150 licensed shops have closed down.

“In one of the three shops, the daily sales target was pegged at around Rs 1.8 lakh. The shop could manage to sell up to Rs 1.2 lakh, leading to losses for the owner. Similarly, in another shop in Lalpur, the daily target was around Rs 5 lakh, but it could sell liquor worth Rs 3-3.5 lakh daily. In such a circumstance, why will the shops continue running?” Jaiswal asked.

The state cabinet in May last year approved the Jharkhand Excise (Settlement and Operation of Shops for Retail Sale of Liquor) Rules, 2025, paving the way for the retail sale of liquor by private players.

A total of 1,343 retail liquor shops, of which 159 sell country liquor and 1,184 shops, which are allowed to sell both country liquor and IMFL, were licensed under the new policy for five years.

Deputy commissioner (excise and prohibition), Rakesh Kumar, said that the shops closed as they did not renew their licences for the new financial year.

“The exact district-wise numbers of the closed shops have not reached the headquarters yet. However, as per information, a cluster of shops each in Jamshedpur and Koderma, two each in Ranchi and Seraikela, four each in Dhanbad and Garhwa did not renew their licences, due to which they were given an ultimatum to close down. Each group consists of a maximum of five shops,” Kumar said.

He further said that the process to allocate the shops to new owners will start soon.

Ranchi assistant excise commissioner Uma Shankar Singh said that out of the three closed shops, one has been settled. “The department is not concerned about whether the owners are making a profit or not. They have agreed to run the shops under the new excise policy and they have to pay dues to the govt on time; otherwise they will face action,” Singh said.