Fewer liquor bottles went off the racks in the state in the last 10 months. The huge hike in excise duty on country-made, foreign and other types of liquor has pinched pockets to such an extent that tipplers are either passing up that peg or are increasingly going in for alcohol smuggled in from neighbouring states. More and more liquor consumers in rural areas have, instead, taken to hooch.
The state excise department had hiked the excise duty on all types of liquor — barring wine, which enjoys duty-free holidays till 2021 — by 40% in April last year. This hit the sales of country-made liquor, IMFL (Indian-made foreign liquor) and beer — which had been 21.54 crore litre, 9.73 crore litre and 20.24 crore litre, respectively, between April and November 2010, dropping to 21.02 crore litre, 9.09 crore litre and 19.20 crore litre between the corresponding period in 2011.
Until March 2011, liquor consumption leapt by 15-20% each year. But since the hike came in place, sales went south, into the negative.
The per capita consumption in the state, which had been on the constant rise — from 3.48 litre in 2003-2004, 4.56 litre in 2005-2006, 5.03 litre in 2006-2007, 6.13 litre in 2009-2010 — is expected to be arrested at 6.50 litre this year.
But excise department authorities aren’t complaining. “Though consumption of various types of liquor has dwindled this year, the revenue has risen, owning to the hike in excise duty,” reasoned AB Ghatol, joint excise commissioner. “Revenue from the excise duty till November 2011 has consolidated to Rs5,108 crore against this year’s target of Rs8,500 crore. Revenue in the corresponding period last year (April-November 2010) was Rs475.66 crore. The duty collection in 2008-2009 and 2009-2010 was Rs4,441 crore and Rs5,056 crore, respectively. This year too, we will be able to achieve our target, as the last four months show higher consumption. Besides, the licence fee of Rs500 crore is collected in last month of the fiscal year.”
An official from the revenue department, though, sounded the warning bells on the hike having given the push to the smuggling in of alcohol from neighbouring states. “The prices of liquor in states like Goa and Madhya Pradesh, and in Diu and Daman are much less than those in Maharashtra and Andhra Pradesh.
Smuggling from the neighbouring states in last 10 months has gone up drastically. Secondly, rural consumers have switched to hooch, which is cheaper than county-made liquor,” he added.
The officer expected the overall consumption of all types of liquor to have dropped due to inflation.
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