Will the poor man’s arrack give the economy a high?

Al Capone made name and money out of bootlegging liquor, when nobody was allowed to sell booze; and he still  continues to be a legend. When N T Rama Rao decided to call Andhra Pradesh a dry state, he won many hearts. In 1960, Gujarat banned sale of alcohol, and many accolades came through. The states of Manipur, Mizoram and Nagaland as well as the union territory of Lakshadweep does not lawfully get high.

But unlike the ignored north-east and the UT, all others have amazed us. The era of prohibition in US witnessed many crimes. Andhra Pradesh sold more booze when they were restricted. Gujarat is still 'easy' booze.

The state of Karnataka and Bangalore especially, has not yet witnessed the hammer on booze. While the city has dishonourably lost its sobriquet of being salubrious, a pensioner's city and that of a Garden city, it still manages to retain the tag of being the pub city of India. Giving another sobriquet to the already 'high' city, was the newly appointed chief minister's 'wise' decision  to get the city's underprivileged citizens a little drunk.

So, while his colleagues did not agree, Siddu seemed to be eying the coffers. It was definitely necessary, says M Mallikarjuna, an independent Chartered Accountant. "It was required for the chief minister to find ways to fill up the chest. He had announced over `4000 crore as sops. How will he fill it up? The ideal option was cheap liquor and arrack. With  major parts of the state reeling in drought, what else was an option? I think there is a huge population which has been sipping arrack and it is celebration time for them and the arrack lobby will definitely be delighted."

Though there is opposition and the decision will take time to finally have everybody's approval, the stigma of the product and the government's zealous attempt to courageously 'harm' the underprivileged has met with severe criticism.

S V Ramanaum Venkatesh, a social activist said, "I am surprised that a government can even think about such a step to make up for their promises. You are talking about liquor which kills families. I think it is one of the most outrageous announcements which has gone through no ideological thinking at all."

But there are many who have have a reserved view on the whole strategy and while they agree that the drink brings in big monies to the exchequer, the poor are indeed the ones who are bearing the brunt of high cost booze.

According to Karnataka Arya Idigara Sangha President, J.P. Narayanaswamy, the revenue from arrack sales almost touched `3000-4000 crores before it was banned. "Before, in each taluk there were 150-plus shops of arrack, but now after the ban, people, especially in the villages, have to travel almost 30-40 kilometres to find a liquor shop. And they pay `10-15 extra on the Indian Made Foreign Liquor, which has burdened them a lot. I think the announcement to tap arrack segment is to get more of excise income, while keeping the poor class tipsy which is an inherent part of their lives."

With booze being one of the significant and reliable earners for the government, according to government sources, it is definitely a wait and watch scenario; a debate that will continue for some more time, probably till the budget.

And with a production cost of only `8 for liquor, sold at `40-plus, this business is definitely one that will be eyed by the people in authority, like it or not.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com