- The majority of countrymen will not mind vociferously vouching for the subject matter again and again. It’s no secret as alcohol and politics are so closely interlinked and interconnected essaying an extremely crucial roleplay. The roleplay of alcohol could be multifaceted encompassing economics, allurement, incentives, and bait as well for the political class irrespective of party affiliations to impress upon the citizens. The excise department is a big money-spinner for the government authorities and needs no further elaboration. Whatever might be the economical condition of the citizens in a country, the revenue earnings originating from the sale of alcohol are always a major contributor to the exchequer. No disputing this fact.
PC: Jacqueline Howard and Scottie Andrew
- The statistics available on this front prove beyond doubt that excise is an important revenue generator. We have witnessed how the pandemic-induced restrictions and lockdowns forced the authorities to shut shop across the country during the first phase of the Covid-19 wave. Scores of patrons, read as alcoholics, committing suicide owing to the non-availability of liquor are well documented. In fact, several cases of breaking the liquor shops to lay hands on the precious commodity are also widely circulated across the spectrums. It was surreal to see the joy, excitement, and relief writ large on the hardcore alcoholics when the shops were finally allowed to open to resuming stalled economic activities. It was a sight to behold, no less.
- As you are aware, India’s alcohol industry in popular perception is closely linked with election campaigns of political parties as well. Any electioneering without the paraphernalia of the liquor flowing like a river to not only attract electorates but also consolidate vote banks even further is unheard of since the inducement is considered essential. It doesn’t stop there. As with any issue inherently associated with merits and demerits, the liquor industry is also associated with the political economy of corruption at the level of state governments too. And in a big way at that. For the uninitiated, it is worth examining how it works. Perhaps the most important way by which state governments maintain a tight grip on the industry is by controlling its retail prices.
PC: Carin Smith
- Note that it’s an industry where almost the entire production chain and even the prices of the end product are controlled by states, which makes them vulnerable to pressure from different quarters. Of course, India is amid a surge in the prices of most commodities. No industry has been left untouched by the economic duress owing to inflationary trends. Yet, in this operating environment, liquor manufacturers cannot adjust retail prices without the concurrence of state governments. Prices usually change after much lobbying. There’s no economic or policy reason for this level of control on a product that is not an essential one. There is a case for the states to unshackle the industry. However, the resistance to it is strong as it affects the political economy of political corruption in India. Now, corruption is an entirely different story altogether.
