Price Decoded

The CSD Economy: How the military liquor quota fuels a civilian black market

Because CSD sales are exempt from crippling state excise duties, the military gets premium liquor at a fraction of the civilian price—inevitably creating a highly-demanded civilian black market for 'fauji' bottles.

FAQs

Why is CSD liquor so cheap?

The Canteen Stores Department (CSD) sells liquor to armed forces personnel at a massive discount because it is exempt from standard state excise duties. Since excise is the single largest cost component of alcohol in India, removing it drops the price drastically.

What is the CSD liquor quota limit?

The quota varies strictly by rank. Officers, JCOs, and NCOs have different monthly limits for spirits, beer, and wine, managed via a smart card system to prevent hoarding and unauthorized bulk buying.

Is it illegal for civilians to buy CSD liquor?

Yes. It is illegal for defence personnel to sell or transfer their CSD quota to civilians. However, the price arbitrage is so massive that a robust, informal 'grey market' exists where civilians leverage connections to procure discounted bottles for weddings and parties.

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