SRINAGAR: Chief Minister Omar Abdullah said on Tuesday that there is no proposal to prohibit alcohol in Jammu and Kashmir, as prohibition will lead to creation of black markets as well as affect tourism and economy negatively.
The statement comes amid calls for a complete liquor ban by J&K Grand Mufti Nasir-ul-Islam and PDP chief and former Chief Minister Mehbooba Mufti.
In response to a question by BJP MLA Balwant Singh Mankotia, J&K CM and Finance Minister Omar Abdullah informed the Assembly on Tuesday that the government has no plans to prohibit alcohol sales in the UT.
The CM said the prohibition might encourage large-scale smuggling of liquor from neighbouring states/UTs.
“There will be a rise in illicit liquor as illegal distillation would increase, posing serious risks to public health,” the CM said.
He informed the house that destruction of 13.65 lakh kg lahan and 16.3 thousand liters of illicit liquor (2024-25 and 2025-26) highlights the dangers of spurious liquor.
“The prohibition will strengthen liquor mafias. Underground networks, money laundering, and hawala activities may grow, impacting security and economy,” the CM said.
He said thousands engaged in manufacturing, wholesale, retail, hospitality, and transport sectors--especially youth--would lose livelihoods.
“Thousands of vehicles dependent on liquor trade would be adversely affected,” the CM said.
He said the prohibition, if any, would lead to industrial loss: “Bottle manufacturing industry would suffer due to reduced demand”.
“Tourists expect access to alcohol; prohibition may reduce tourist inflow as visitors prefer neighboring states,” he said. “Hotels, restaurants, and resorts rely on liquor sales to enhance customer experience and revenue.”
“Many tourists prefer hotels with bars and prohibition will affect occupancy and earnings,” he said.
According to CM, the alcohol regulation involves social, economic, ethical, and public health trade-offs. “Taxation on alcohol acts as a dual tool—generating revenue while discouraging excessive consumption,” added the CM.
“Liquor and drugs are destroying society and the social fabric. While the government is acting against drug abuse, it must show the same seriousness towards liquor and ban its sale and purchase in J&K,” he said.
According to the data, Kashmir generated an excise revenue of Rs 18,448.50 lakh in the last two years despite being a predominantly Muslim region, where liquor consumption remains socially and religiously sensitive.
Reacting to the surge in liquor use, J&K Grand Mufti Mufti Nasir-ul-Islam urged the government to impose a complete ban on liquor.