Guwahati: The effective reforms dated 10 December 2021, added the much-required ‘Elegant’ Slab between Luxury and Premium segment is a path-breaking move by the State Government of Assam. With the introduction of the ‘Elegant Slab,’ the excise department has been able to contribute substantial revenues for the state of Assam. It is estimated that over the next six months, the state government will be able to add approx. INR 20 crores to its revenue with the introduction of the ‘Elegant Slab.’

While 70% of the consumption in Assam is for the Luxury segment, this segment has only grown in lower single digits in the last few years, whereas, with the introduction of Elegant Slab, not only has the segment volumes doubled, but even the revenue contributions have accelerated at a rapid pace from 31% in 2019-20 to 103% in 2021-22.

This policy change by the Government has not only enabled a drive towards ‘premiumization,’ but has provided an opportunity and equal playing field for new and small players, thereby giving consumers more choice. 

With the inclusion of ‘Elegant Slab,’ which is a progressive stance by the state government, all relevant segments of whisky are showing stable growth in volume and desired state revenue. There has been revenue growth of 38% as against a volume growth of 30%, which makes it evident that the changes in the duty structure were required and it helped to increase revenue for the state of Assam. This also supports the point on premiumization which augurs well for the state’s revenues. Over a longer period of time, possibly by the end of 2022, it will lead to a further increase of state revenue.

It is important to note that with the introduction of ‘Elegant Slab,’ the state government of Assam has been able to prevent Cross Border Infiltration as today the MRP for the whisky segment is the same and comparable with that of neighboring states of Assam.

The industry has witnessed benefits of premiumization model in many states like Rajasthan, Delhi, Uttar Pradesh, Maharashtra, and West Bengal where a) state revenues have increased significantly, b) there have been better margin realizations for suppliers and c) consumers can purchase premium quality brands at affordable pricing. The introduction of ‘Elegant Slab,’ is definitely moving in the right direction and the industry appreciates and applauds the measures taken by the state government of Assam.