Monday, August 25, 2014

Kerala: Liquor Prohibiton

God's own country could be alcohol-free in 10 years, according to the excise policy of the United Democratic Front government, finalized at a meeting of its high-power committee chaired by Chief Minister. Kerala has the highest per capita consumption of liquor in India at 8.3 litres.
As a first step, 418 bars, closed since April 1 as they failed to upgrade to two-star facilities, won't have their licences renewed. Similarly, licences of 312 functioning bars won't be renewed after March 31, 2015. The government will explore the legal possibility of terminating their licences immediately.

From April 1, 2015, only five-star hotels -there are 23 in the state -will be granted bar licences. The excise policy draft is mum on the status of 111 beer/wine parlours in the state, but UDF sources said they would be allowed to function. The government also decided to phase out Beverages Corporation (Bevco) outlets in the state, which retail liquor. The 334 outlets in 14 districts will be phased out by winding up 10% every year. Chief Minister Mr. Oomen Chandy said that, the UDF has come out with a unanimous decision for a liquor ban in the state to achieve total prohibition.
The UDF's recommendation to move towards prohibition in Kerala will be shortly ratified by the state cabinet, following which it would be conveyed to the Kerala high court as a policy Kerala has the highest per capita consumption of liquor in the country at 8.3 litres. Punjab comes second with 7.9 litres, while the national per capita consumption of capita consumption of liquor is four litres.

Apart from the doubtful efficacy of total prohibition, Chandy risks putting more pressure on an already sluggish economy . The state would incur Rs.8,000 crore loss due to the ban, that is more than one-third of the state government's annual plan outlay.

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