THIRUVANANTHAPURAM: At a time when liquor-related issues have attracted bad press yet again, the full-fledged entry of foreign-made foreign liquor (FMFL) into the state’s liquor market is taking its own time. Though the Kerala State Beverages Corporation (Bevco), the state-run monopoly on liquor sales, had initially planned to introduce FMFL in the Kerala market in May this year, only one company - Indospirit Distribution Ltd - has so far ventured to do so. As many as 17 companies had originally evinced interest in importing and distributing FMFL and foreign-made wine in the state.
‘’Companies seem to have adopted a wait-and-watch policy. One company had started supply a month ago. A second one has obtained the permit but is yet to begin supply,’’ Bevco managing director Sparjan Kumar said.
Bevco officials are hoping that more companies would enter the picture over the next two to three months. In all likelihood, companies are taking their time in exploring the Kerala market as foreign-made alcoholic beverages belong to the higher end of the price spectrum, said Bevco officials. Thus, the wait and watch policy. FMFL prices swing between Rs 880 a 500 ml bottle to a stunning Rs 57,710 a 700 ml bottle (a Glenfiddich single malt Scotch whisky). Foreign-made wines poised to hit the market alone number over 40 brands.
Initially, FMFL will be available at the premium outlets of Bevco. The entry of FMFL had been delayed by several months due to permit-related technicalities. When Bevco invited bids for supply from April 1, 2018, to March 31, 2019, nine companies had placed bids for supplying FMFL and eight, for foreign-made wine. FMFL sales are expected to boost Bevco revenue by Rs 50 to Rs 100 crore annually. Earlier this year, the government had also decided to peg the import duty on FMFL at 78 per cent and that of wine at 25 per cent.