Pointing out that the states have already lost around Rs 20,000 crore in revenues during the lockdown period so far, the apex body of the Indian alcoholic beverage industry has urged the Centre as well as states to allow opening of liquor shops while strictly following all social distancing guidelines, besides considering online sales to check overcrowding at outlets.
In its letter written to all state chief ministers (barring states which are under prohibition), the CIABC has pleaded "the state governments should take up the matter once again with the Centre to permit production, distribution and sales of alcoholic beverages outside containment zones, in conformity with COVID-19 guidelines".
"Constitutionally, alcohol is a state matter, and hence it is state government which should unequivocally be the only authority to permit or not permit trade in alcohol," the letter said.
Pointing out that the governments need to bring in systemic changes in the way the alcoholic beverage industry works to ensure social distancing in future, the CIABC has asked the state governments to impress upon the Centre to push for technology-based controls in place of physical man-based controls on production/warehousing sites and on stock in transit.
It has also sought addition of new sale channels which do not need gathering of people such as home deliveries through dedicated portals or government's websites.
Noting that in these difficult times when entire industry and economic activities are shut, the states' coffers are taking a big hit, CIABC Director General Vinod Giri told , "This is the second letter which we have written to the chief ministers since the lockdown began urging them to take up the matter of opening liquor industry with the Centre."
He further said, "Our industry is the major source of revenues for the states. We employ 20-lakh workforce and assist livelihood of 40 lakh farmers. Under current circumstances when our earnings are zero, we cannot sustain for long. This will lead to huge job cuts and massive financial losses. The governments need to urgently consider opening of sale and distribution."
According to CIABC, the Indian alcoholic beverage industry contributes around Rs 2 lakh crore per annum in revenues to the government.
Tax on alcohol consists of 20 to 40 per cent of tax revenues of states. A total ban on liquor deprives state governments of own revenue so vitally required in fighting COVID-19.
Giri further noted that prolonged unavailability of legal alcohol has serious consequences.
"There are growing reports of liquor smuggling, sale of illicit and spurious liquor, and looting of shops. These not only deprive state of legitimate tax revenues, they also pose grave threat to public health and law and order. It is also well known that some people need alcohol on medical grounds. Blanket ban on sale of liquor is unjustified," he said.
Significantly, some state governments have taken up the matter with the Union Home Ministry for opening of liquor industry in their respective states.
Punjab, Maharashtra, Karnataka and Delhi governments have been more vocal about it.
A few days back Punjab Chief Minister Amarinder Singh had written to the Centre seeking permission for opening of liquor vends. Delhi and Maharashtra have been pushing for online sale and home delivery of liquor. KKS MKJ