Thiruvananthapuram: With the move to sanction liquor manufacturing units running into a controversy, the state government would weigh the option of selling only locally brewed alcohol in Kerala even by adopting the Tamil Nadu model. In the neighbouring state, retail liquor sale is exclusively in state control, and licensing of production is also tightly controlled.
After Opposition Leader Ramesh Chennithala demanded the state government to follow Tamil Nadu's example in liquor production, Excise Minister T P Ramakrishnan instructed Additional Chief Secretary (Excise) Dr. Asha Thomas to study its viability and submit a report to the government.
The government has also made it clear that apart from the three breweries and one distillery that have already been given permission, no more applications seeking licence to set up brewery units would be entertained under any circumstances.
However, the policy will not be implemented through an order as it would lead to a myriad of legal issues. Moreover, such a move would weaken the government’s stance in the case filed by a distillery company seeking licence for brewery unit. The case is currently pending in the High Court.
Since the government has already given licence to four companies to set up breweries, more distillery units are expected to submit application. A decision against granting permission to new applicants could land the government in legal trouble. In such a circumstance, the government might try to delay the scrutiny of new applications and take more time to reach a final decision.
Of the total amount of liquor sold in the state, about 35 percent is procured from manufacturers from other states. As a result, the distilleries in Kerala produce only half of the total quantity sold in the state. A majority of distillery workers in the state are employed on a contract basis. They work on an average of only 15 days per month.
Out of the 20 distilleries in Kerala, three remain closed due to labour issues. Though the 17 distilleries that are functional have a total production capacity of 36 lakh cases per month, the monthly production is only to the tune of 19 lakh cases as of now.
As much as 35 percent of the liquor sold in Kerala is produced by the United Spirits Limited, which is the world’s second-largest spirits company by volume.
