THIRUVANANTHAPURAM: The UDF government on Sunday froze an LDF-era decision that allowed bakeries, supermarkets and malls to sell fruit-based wine with high alcohol content, and removed a top-level excise official who had issued the licence to a bakery in Thrissur. The first-of-its-kind decision of the previous government will remain on hold until the new liquor policy, expected by November-end, is announced.
The move followed a row over MRC bakery in Thrissur’s Chalakudy securing the first-ever licence to sell horti wine with up to 15% alcohol content. The owner, Krishnakumar, bought the first stock on Saturday. However, following news reports, Excise Minister M Liju froze the decision, telling reporters that the government was not told about the licence.
On his instructions, Deputy Excise Commissioner C K Anil Kumar, who issued the licence, was removed. Liju sought a report from Excise Commissioner Sambasiva Rao on how the licence was issued and asked the additional chief secretary (taxes) to seek legal advice.
“The government is not against horti wine or farmers. However, we cannot accept the idea of wine with 15% alcohol content being sold at bakeries. It can still be sold via Bevco outlets,” Liju told TNIE.
Why should we suffer due to rivalry of changing govts, asks bakery owner
Liju pointed out that beer, with about 8% alcohol content, is sold only via Bevco outlets, bars or beer parlours.
“Under LDF rule, a bakery with just 10 sq m of space could sell wine with 15% alcohol. This means almost all bakeries in the state could sell it by paying the `10,000 licence fee.”
Four more applications pending with the department will also be put on hold, the minister said.“The government is preparing its liquor policy. The officer should have been careful and sought the government’s opinion,” he said.
Hitting back, former excise minister M B Rajesh said not being aware of the rule was a failure of the government and the minister.
Bakery owner Krishnakumar termed the government’s move disappointing for him and other entrepreneurs.
“Why should we suffer due to ideological rivalry between changing governments? This is why Keralam is called investment and business-unfriendly,” he told TNIE.
He said he got the licence this June after multiple visits to various offices since last November. He said he spent `50,000, including `10,000 for licence and Rs 40,000 on seven cartons of wine. “It has only 10% alcohol. The licence allows up to 15%,” Krishnakumar said.
The LDF government had announced the small-scale winery rules under its 2022-23 liquor policy.
Under it, 86% tax, same as regular wine, would be levied on horti wine. In January 2024, it amended the Foreign Liquor rules to allow sales outside Bevco outlets, in hypermarkets, supermarkets, malls and bakeries with at least 100 sq m of space.
In September 2025, the space requirement was cut to 10 sq m. Kerala has four units holding licences to make horti wine.
