Corona virus: Why the public and government in India are anxious to sell alcohol
Corona virus: Why the public and government in India are anxious to sell alcohol
During the lockdown that has been going on in India since the end of March, when liquor shops reopened on May 4 after being closed for 42 days, there was a rush of people on the deserted streets across the country.
In many places, bartenders were seen queuing up hours before the opening of liquor stores, and such crowds had never been seen outside liquor stores in the country before.
The government of the Indian state of Uttar Pradesh earned Rs 100 crore from the sale of liquor on the first day. The next day, the Karnataka government received about Rs 200 crore in excise duty. As soon as the shop opened in Delhi, so many people came out that the social distance rule was not followed and the police had to charge batons.
The Delhi government announced the issuance of e-tokens from Friday to ease the rush of citizens outside liquor shops, but the e-token issuance website crashed.
Why are people so anxious for alcohol?
The first reason for the crowds outside liquor stores in India is that liquor stores have been closed for the past month and a half due to lockdowns.
Due to an unexpected lockdown, alcoholics have been locked in their homes for over a month and a half, and the demand for alcohol has risen sharply due to a lack of social activity.
The second reason is that this country with a population of one and a half billion is now the largest country in the world in terms of alcohol consumption.
Along with hard drinks like whiskey and rum, alcohol like wine and beer are also popular among the majority of India's youth population.
In Indian society, the middle and relatively affluent class defines alcoholism as 'moderation and personal freedom'. The ban on alcohol during the lockdown is being interpreted by many as "state coercion" and is now seen as a sign of "the return of lost freedom".
The Corona epidemic could continue for several more months. One of the hypotheses of experienced drinkers is that in this case the distillation of alcohol may be interrupted and the supply of alcohol may be stopped in a few weeks.
Because of this fear, many people are stockpiling alcohol for the future.
State governments eager to open liquor stores
Many in the country are objecting that opening a liquor store at a time when the whole country is fighting Corona and millions of people are struggling to eat and drink is a serious joke.
But state governments are more eager to open liquor stores than consumers to sell liquor.
The production and sale of wine is a major source of cash and solid revenue for the states. At a time when economic activity in the country is completely suspended and states do not even have the money to pay their employees, they are making billions from the sale of alcohol.
Seizing the opportunity, the Delhi state government has imposed an additional 70 per cent corona tax on alcohol. Karnataka has also levied an additional 17% tax. Andhra Pradesh has followed Delhi's lead by levying an additional 75 per cent tax. Almost all states have imposed additional taxes on alcohol. This will give these states an additional revenue of thousands of crores.
According to a report by the Reserve Bank of India, in the financial year 2019-20, 31 states of the country, including Delhi and Pondicherry, earned Rs 175,000 crore from the sale of liquor.
This income was growing at an annual rate of 16%. The imposition of excise duty on liquor earned Tamil Nadu Rs 37,000 crore and Kerala Rs 18,000 crore.
In the last financial year, Delhi received Rs 6,000 crore in excise duty, meaning that the state was earning Rs 500 crore every month from the sale of liquor.
Uttar Pradesh had an annual income of Rs 31,517 crore from alcohol.
Karnataka had an income of Rs 20,000 crore and Maharashtra Rs 17,477 crore while a small state like Telangana had an income of Rs 11,000 crore.
In India, after central and state taxes and excise duty on petroleum, alcohol is the largest source of revenue for the states. In an era of the Corona epidemic, when all economic and commercial activities are closed and petrol sales are stagnant due to non-operation of motor vehicles, alcohol is the only source of income for the states.
Drunkards have not disappointed the government in this difficult time. In the last five days, liquor consumers have begun to open up India's economy by spending thousands of crores of rupees.
During the lockdown that has been going on in India since the end of March, when liquor shops reopened on May 4 after being closed for 42 days, there was a rush of people on the deserted streets across the country.
In many places, bartenders were seen queuing up hours before the opening of liquor stores, and such crowds had never been seen outside liquor stores in the country before.
The government of the Indian state of Uttar Pradesh earned Rs 100 crore from the sale of liquor on the first day. The next day, the Karnataka government received about Rs 200 crore in excise duty. As soon as the shop opened in Delhi, so many people came out that the social distance rule was not followed and the police had to charge batons.
The Delhi government announced the issuance of e-tokens from Friday to ease the rush of citizens outside liquor shops, but the e-token issuance website crashed.
Why are people so anxious for alcohol?
The first reason for the crowds outside liquor stores in India is that liquor stores have been closed for the past month and a half due to lockdowns.
Due to an unexpected lockdown, alcoholics have been locked in their homes for over a month and a half, and the demand for alcohol has risen sharply due to a lack of social activity.
The second reason is that this country with a population of one and a half billion is now the largest country in the world in terms of alcohol consumption.
Along with hard drinks like whiskey and rum, alcohol like wine and beer are also popular among the majority of India's youth population.
In Indian society, the middle and relatively affluent class defines alcoholism as 'moderation and personal freedom'. The ban on alcohol during the lockdown is being interpreted by many as "state coercion" and is now seen as a sign of "the return of lost freedom".
The Corona epidemic could continue for several more months. One of the hypotheses of experienced drinkers is that in this case the distillation of alcohol may be interrupted and the supply of alcohol may be stopped in a few weeks.
Because of this fear, many people are stockpiling alcohol for the future.
State governments eager to open liquor stores
Many in the country are objecting that opening a liquor store at a time when the whole country is fighting Corona and millions of people are struggling to eat and drink is a serious joke.
But state governments are more eager to open liquor stores than consumers to sell liquor.
The production and sale of wine is a major source of cash and solid revenue for the states. At a time when economic activity in the country is completely suspended and states do not even have the money to pay their employees, they are making billions from the sale of alcohol.
Seizing the opportunity, the Delhi state government has imposed an additional 70 per cent corona tax on alcohol. Karnataka has also levied an additional 17% tax. Andhra Pradesh has followed Delhi's lead by levying an additional 75 per cent tax. Almost all states have imposed additional taxes on alcohol. This will give these states an additional revenue of thousands of crores.
According to a report by the Reserve Bank of India, in the financial year 2019-20, 31 states of the country, including Delhi and Pondicherry, earned Rs 175,000 crore from the sale of liquor.
This income was growing at an annual rate of 16%. The imposition of excise duty on liquor earned Tamil Nadu Rs 37,000 crore and Kerala Rs 18,000 crore.
In the last financial year, Delhi received Rs 6,000 crore in excise duty, meaning that the state was earning Rs 500 crore every month from the sale of liquor.
Uttar Pradesh had an annual income of Rs 31,517 crore from alcohol.
Karnataka had an income of Rs 20,000 crore and Maharashtra Rs 17,477 crore while a small state like Telangana had an income of Rs 11,000 crore.
In India, after central and state taxes and excise duty on petroleum, alcohol is the largest source of revenue for the states. In an era of the Corona epidemic, when all economic and commercial activities are closed and petrol sales are stagnant due to non-operation of motor vehicles, alcohol is the only source of income for the states.
Drunkards have not disappointed the government in this difficult time. In the last five days, liquor consumers have begun to open up India's economy by spending thousands of crores of rupees.
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