Liquor barons’ spirits soar high in Karnataka with ban on arrack round the corner

With the Karnataka Government’s ban on sale of arrack, a country-made liquor, coming into force from July 1, the liquor barons in the State are gearing up to not only enhance production of Indian Made Liquor (IML), but also introduce several new brands.

Come July1, all the 15,248 arrack outlets spread across the State, which were selling an estimated 1.35 million litres of the country-made liquor every month at Rs 12 for a sachet of 100 ml, will be closed.

The Government ban on arrack came in the wake of public outcry against growing alcoholism among the poorer sections of the society. Bowing to pressure from several women’s groups and heads of religious institutions, the coalition Government banned arrack despite revenues from its sale fetched the Government more than Rs 20 billion last year.

With the ban likely to drive tipplers from the lower strata of the society, who are the main consumers of arrack, towards IML sold at liquor shops, bars and restaurants, liquor barons in the State have already begun introducing additional bottling lines in distilleries, besides reviving distilleries that had been closed for either technical or financial reasons.

Government officials said even the Excise Department is in favour of increasing the production of IML in the State, which presently stands at 1.8 million litres a month. But, the Excise Department is bringing pressure on the IML manufacturers to bring down the price from the prevailing Rs 32 for a measure of 180 ml to Rs 26. The losses incurred by the reduction in price can be compensated by the increased quantum of sales, the Excise Department officials have argued.

Meanwhile, the Government has constituted a 13-member squad comprising personnel from police as well as excise department to enforce the ban on sale of arrack from July 1.