Arrack and lottery banned in Karnataka

In the wake of a public outcry against rampant alcoholism and gambling, the Karnataka Government has imposed a total ban on arrack, a strong alcoholic drink, and lottery across the State.

The ban sale of arrack and lottery was the highlight of the Karnataka State Budget 2007-08 presented by Deputy Chief Minister B S Yediyurappa, who also holds the Finance portfolio, in the Legislative Assembly yesterday.

The ban on sale of arrack, which comes into force from July 1, is expected to cause a loss of Rs 19.5 billion to the State exchequer. The widespread consumption of arrack, which is presently sold in plastic sachets through 15,248 authorized outlets across the State, was been identified as one of the main reasons for the rising social distress, particularly in rural areas of the State.

The JD (S)-BJP Government’s decision to ban arrack comes despite a strong move by the powerful liquor lobby to stall the move on various grounds ranging from joblessness among the people engaged in the industry to creating avenues for spurious liquor manufacturers.

With a view to overcoming the loss to the state exchequer on account of the ban on arrack, Yediyurappa has proposed to double the license fee for bars, clubs, star hotels and retail shops. The Government is expected to raise an additional Rs 20 billion from the proposal.

Yediyurappa also declared that the Karnataka would become a “Lottery Free Zone” with effect from April 1. All types of lottery including the on-line lottery, which is a rage among daily wagers, as well as the lotteries of other states have been banned. The ban on lotteries is expected to result in a loss of around Rs 2.5 billion to the state exchequer.

Several women’s organizations and Pontiffs of religious organizations had brought pressure on the State Government to ban arrack and lottery, which they said had ruined the lives of several families in the State.

In another populist measure, the Karnataka Government has waived off short-term crop loans upto a maximum of Rs 25,000 obtained by the farmers from co-operative banks and financial institutions. Short-term loans obtained by weavers and fishermen upto a maximum of 25,000 from co-operative banks too had been waived off.

Farmers, who had availed of medium-term and long-term loans, have been offered with an interest waiver if they repaid the principal amount before March 31.