Kerala, any given day, can drink the rest of India under the table?the per capita alcohol intake in the state, at 8.3 litres, is slightly more than double that of the entire country (4 litres). So, does the state?s Congress-led UDF government?s move to make it alcohol-free even make sense? Clamping down on alcohol makes bad business sense, given the annual revenue from the tipple business stands at about R10,000 crore a year. The prohibition regime looks at shutting down 730 bars?418 now and 312 from April 1, 2015, onwards?by refusing renewal of licence. The next step, the government has announced, would be closing10% of the state?s 334 Beverage Corporation alcohol retail outlets every year. Only the 23 five-star facilities in the state will be able to sell alcoholic beverages. It doesn?t seem likely that sales at the luxury outlets can compensate for the losses from the shut bars. The impact on the tourism industry, though yet to be evaluated, seems potentially huge, too.
Curbing alcohol abuse, so vociferously endorsed by both the Church and the Congress party (Kerala Pradesh Congress committee president VM Sudheeran is a strong advocate of prohibition), is a necessary social end. But prohibition seems like the least pragmatic way to go about it and could lead to severe withdrawal symptoms for the state. For one, a thriving bootlegging market would follow immediately, given how cheap liquor from Karnataka, a major producer, will find its way across state borders. Thus, Kerala?s consumption will likely see some erosion but not fall significantly, meaning the government?s intent is belied and there is a revenue loss to top that. There are better ways to deal with alcohol as a public health issue; a punishing sin-tax is one while awareness drives are another.
