Assam, Arunachal & Meghalaya initiate process to check illicit liquor trade

Staff Reporter

Guwahati: To curb the illicit liquor trade and to stabilise the excise revenue, a process has been initiated at the excise minister level by the governments of Assam, Arunachal Pradesh and Meghalaya. The three states have agreed in principle to adopt a collaborative approach to this issue.

Already, the excise minister of Assam met separately with his Arunachal and Meghalaya counterparts to explore ways to formulate mutually beneficial excise policies and improve state revenue through coordinated initiative.

Sources said that Assam is losing in two ways – illicit liquor trade from the Arunachal side and the price difference due to lower excise rates in Meghalaya.

Sources further said that, driven primarily by sharp disparities in excise duties, low-cost alcohol manufactured in neighbouring states like Arunachal Pradesh and Meghalaya routinely floods Assam’s markets. As a result, the Assam state exchequer experienced a significant loss of critical revenue.

A new strategy has been adopted, dubbed UMEED (Uniform Market Excise Ecosystem and Duty), which aims to establish price parity for liquor products across Northeastern states. The logic is simple yet profoundly effective: if the price gap between states is neutralised, the financial incentive for smuggling evaporates overnight.

The diplomatic momentum behind UMEED has risen significantly. Following an initial breakthrough with Arunachal Pradesh, Excise Minister Atul Bora recently led a high-level delegation to Shillong for a pivotal joint meeting with Meghalaya’s Excise Minister, Barning A. Sangma, which underscores the institutional weight behind these talks.

By sitting across the table to synchronise taxes, Assam and Meghalaya are demonstrating a mature brand of cooperative federalism. It signals a shift from zero-sum competition to absolute mutual gain; both states stand to stabilise their revenues and secure their borders.”

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