Bhopal Liquor Shop Auction Sees Complete Boycott by Contractors
The much-anticipated auction of 29 liquor shops in Bhopal district concluded without a single bid on Monday, as liquor contractors apparently organized a boycott of the tender process. The auction, which was conducted in 7 groups, failed to attract any participants despite a reserved base price set at Rs 520 crore.
Excise Department to Reattempt Auction on March 5
According to sources within the excise department, the shops will be put up for auction again on March 5, as part of the second phase of the licensing process. The 87 liquor shops in Bhopal district have been strategically divided into 20 groups and will be auctioned across three distinct phases, with Monday's event marking the unsuccessful first phase.
Contractors Cite Financial Unviability as Reason for Boycott
A prospective bidder from Gwalior, speaking on the condition of anonymity, explained the rationale behind the boycott. "Taking Bhopal shops on prices they are demanding is not financially viable. That's why there was no tender received for any of the shops," the bidder stated. This sentiment reflects a broader concern among contractors regarding the increased base prices for the upcoming fiscal year.
Significant Price Hikes and Departmental Targets
The base price for liquor shops for the year 2026-27 is, on average, 20% higher than the price at which the same shops were auctioned in 2025-26. In the previous fiscal year, all shops in the district were auctioned for a total sum of Rs 1193 crore, exceeding the excise department's target by 11%.
For 2026-27, the reserve price has been set at Rs 1432 crore, which represents the minimum amount the excise department aims to achieve through the contract allocations. This substantial increase appears to be a primary factor driving the contractors' decision to abstain from bidding, highlighting tensions between revenue targets and market feasibility.
