The Hindu : Front Page : Low spirits among consumers as arrack is banned from July 1

Online edition of India's National Newspaper
Tuesday, Jun 19, 2007
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Low spirits among consumers as arrack is banned from July 1

T.S. Ranganna

Excise Department confident it will meet the increased demand for IML

More than 1.62 crore litres of arrack is consumed in the State
About 80,000 people will lose their employment owing to arrack ban

Bangalore: The ban on the sale of arrack is something that is keeping liquor barons in good spirits these days. With less than a fortnight before the ban comes to effect, Karnataka will witness the introduction of several new liquor brands. Distilleries have been requested to start additional shifts to keep the consumers in high spirits.

Additional bottling lines are being introduced in some distilleries, and where required, distilleries closed for technical or financial reasons may even be asked to re-start production. Along with these, a top official said, a few sugar factories have also evinced keen interest in setting up distilleries utilising the molasses generated in the factory.

Till last month the production of India Made Liquor (IML) was 18 lakh litres a month. These are some of the measures being initiated to meet the demand officials said.

More than 1.62 crore litres of arrack is consumed in the State, i.e. 13.5 lakh litres a month. This was sold through 15, 248 licensed arrack shops. These outlets will be closed, throwing their owners and employees numbering around 80,000 out of employment. The new, and more expensive IML brands will not be supplied through the same network of private outlets. They will be sold in regular liquor shops, bars and restaurants, and clubs.

The Government has not initiated steps to supply IML to the people who are living in the immediate vicinity of these arrack shops in the villages.

Confident

However, the Excise Department continues to maintain that it can meet the increased demand for the supply of IML by strengthening the existing capacity. According to sources in the department, a leading premium brand liquor manufacturer that supplies IML at Rs. 32 and above has been requested by the Government to supply it at Rs. 26 for 180 ml. The losses could be compensated by the increased quantum of sales.

The State Government will implement the radically new excise policy which will make Karnataka a non-arrack consuming State joining other southern States. The ban on manufacture, transport and sale of arrack will be enforced by the Departments of Excise and Police, with the Karnataka Beverages Corporation Limited.

Timings

Another change being contemplated is extending the timings of sale of liquor in wine shops, bars and restaurants and clubs by a couple of hours. This would also meet the demand by some people such as those working in the information technology sector.

But, such a change of timing could not be restricted only to Bangalore and it should be a State-wide arrangement.

The police, the sources said, had not been asked for their opinion, which was not likely to be positive.

The officials also point out that the arrack ban would ensure healthy liquor to arrack consumers, most of whom came from the lower strata of society, at affordable prices. Giving an example, the sources said that a consumer of arrack was paying Rs. 12 for a sachet containing 100 ml of arrack, while he would have to pay Rs. 26 for a bottle of IML containing 180 ml of liquor.

Allaying the confusion among the arrack consumers that they would not get the expected satisfaction from IML, the officials said that what was not known to many was that the latter contained a greater concentration of spirit compared with arrack. .

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