Merry times for Kerala’s toddy as State proposes a new liquor policy

By Eetika Kapoor

Recently, the LDF (Left Democratic Front) government in Kerala led by Pinarayi Vijayan has proposed to alter the existing ban on the sale of hard liquor across Kerala. The move was initiated by former Chief Minister Ooman Chandy who aimed to declare Kerala a completely dry state by 2023. Interestingly, the new liquor policy by the LDF which will be effective from July 1, 2017, lifts the ban on 718 bars in hotels with three stars and above.

The Chief Minister of Kerala claimed that prohibition is not a practical or feasible solution, despite respecting the anti-liquor sentiments. Adding to the changes, the legal drinking age has been raised from 21 to 23 yearsThe new policy will allow the serving of Toddy( a homemade palm wine in Kerala), beer and other hard spirits.

What was expected from the alcohol ban?

In August 2014, the UDF( United Democratic Front) in Kerala refused a license to 418 bars while shutting down 312 non-five star bars. Due to the liberal availability of alcohol, there was a surge in violence witnessed by the state. The ban aimed to hit the lower and middle-income group who are the chief patrons of small-scale private bars.

Keeping in mind these factors, the government aimed to declare Kerala a dry state and be alcohol free by 2023. Supported by the civil society and religious leaders, the anti-liquor movement was officially adopted by the state. Many women who had supported the move had reported that 50% of domestic violence stemmed from alcohol consumption.

The resultant turmoil after the ban

The Trade Research Study of 2016 reflected a steady drop in Kerala’s GDP from 8.1% in 2013 to 5.9% in 2015. INR 65,000 crores were at stake and a million jobs were lost. This industry employs 25,000 people a year and contributes INR 1,500 crores annually. Subsequently, the liquor ban resulted in a slump in Kerala’s economy.

The reluctance of the government to close state run alcohol retail outlets was one of the many reasons for the failure of the liquor ban. The growth of foreign exchange dipped along with inefficient MICE (Meetings, Incentives, Conventions and Exhibition) and an ill-equipped excise department. Hotels and resort owners blamed the previous liquor policy for declining tourism growth. Coupled with this, there was an alarming rise in the sale of spurious alcohol and drugs.

Contemplation on the new liquor policy

Since tourists assume Kerala to be a dry state, a welcome change in the form of this policy could generate additional revenue from the sale of IMFL( Indian Made Foreign Liquor). The LDF Convener, Vaikom Viswan, also assured the state that the alcohol vendors would be situated 500m away from the highways to avoid the probability of accidents. Liquor outlets will not need permission from local bodies to start new stores. However, it will take time for giving out licenses to three stars and above hotels keeping in mind the slew of hotels upto two stars in the state.

Claims that the LDF “cheated people”

With the ban on the slaughter houses in Kerala, the hostility between the Centre and the State is inescapable. BJP president Kummannam Rajesekharan said that the LDF has betrayed the trust of people that brought them to power. Furthermore, the Archbishop of the Latin Diocese, M Susaipakiam, was critical of the new liquor policy. “The left government is overtly and covertly helping the liquor lobby. We will not sit idle and will continue our tirade against evil.”

The decision has also not gone down well with the civil society. Due to the easy availability of alcohol in the state, there is a higher risk of domestic violence and crime as past records show. But the failure of non-alcoholic policies in the states of Andhra Pradesh, Haryana, Mizoram, Tamil Nadu and Gujarat tell a different story. Better equipped rehabilitation centres for alcoholics and drug addicts should be the way forward instead of banning the sale of liquor altogether.


Featured image credits: The Indian Express