THIRUVANANTHAPURAM: Kerala could face a shortage of liquor in the coming weeks as distributors have cut short supply to the State Beverages Corporation (Bevco). Already, supply of cheap brands has been hit and those in other categories would be affected in near future, it is learnt. The government will be forced to make a hard choice shortly, either a price hike or tax rebate, to avoid a crisis, said a source. Liquor industry is facing an unprecedented situation as the price of Extra Neutral Alcohol (ENA) has gone through the roof. ENA is the primary raw material for making alcoholic beverages.
It is derived from sugarcane molasses or grains. Industry sources said ENA price saw an increase of 40 pc in recent months. Distributors’ representatives had a meeting with Excise Minister M B Rajesh recently. They demanded immediate measures like a hike in procurement price or tax rebate. “It is true that the liquor industry is facing a crisis owing to ENA price rise. Most of the distributors are on layoff.
They have asked for relief - either a price hike or tax sop. The matter is being considered seriously as Bevco’s procurement has been hit. A decision will be taken at the earliest,” Minister Rajesh told TNIE. The minister said consultation at different levels, including one with Finance Minister K N Balagopal, will be made. It seems to be difficult to announce a tax rebate in the backdrop of the government’s fiscal strain, Rajesh said.
In the wake of recent thefts at self-service shops, Bevco plans to open a special counter at busy outlets for the sale of 180 ml bottles and cheap brands. The idea is to reduce crowding at shops. Most of the thefts were by groups who visited the shop for the purchase of cheap brands. The stolen bottles were expensive brands. Such counters have been opened in some shops and have been found successful. Bevco has warned of strict legal action against liquor thieves.