Bengaluru: In a reversal of Kerala’s liquor prohibition policy, the ruling Communist Party of India (Marxist) or CPM may allow certain bars to operate in tourist destinations.
The development, first reported by regional news channels on Wednesday, could lead to the reopening of 35-40 4-star bars in the state.
A CPM leader confirmed the development. The changes planned are in concurrence with the stated policy of the government to give prominence to abstinence rather than prohibition in Kerala, the leader said, requesting anonymity as the plans are still under works.
Kerala consumes more alcohol than any other Indian state—official estimates peg the per capita consumption at more than 8 litres per person per year.
On 4 January, Mint reported that the present prohibition policy, imposed two years ago by the previous Congress-led government at an estimated loss of Rs1,800 crore to the exchequer, citing risk to public health from alcohol, may be set for a change in 2017.
This could be a crucial year for the state’s liquor policy, state excise minister T.P. Ramakrishnan had said.
The Left Democratic Front (LDF) is expected to unveil the reversals while renewing the state liquor policy on 1 April, said the CPM leader.
The CPM state secretariat, which met a fortnight ago, discussed these changes, and a final decision is supposed to be arrived at the LDF state committee meeting to be held after the ongoing budget session, he said.
Under the United Democratic Front (UDF) government’s prohibition policy, bars were either shut down or turned into beer and wine parlours, and only five-star category bars were allowed to sell foreign liquor. It also proposed to make Kerala a liquor-free state by 2023.
The CPM government’s move, however, was not unexpected. Soon after assuming power last year, the government did away with the custom of shutting down 10% of government-run liquor outlets permanently on every 2 October, on the occasion of Gandhi Jayanti, a routine started by the previous government.
The CPM’s re-think on the policy stems from various reasons but is mainly based on an earlier report submitted to the government, where the state tourism department sought for relaxation of liquor policy at least in top tourist spots, citing falling revenue.
The sector, one of the major revenue-generating arm for the government, has been significantly hit because of the restrictions. “In business tourism, the most important sector is called MICE (meetings, incentives, conferences and conventions, exhibitions and events). It is safe to assume that the restrictions on alcohol and the withdrawal of bars and the overall negative publicity that arises from all this confusion had had a direct impact in cancellation of 50% of MICE-related projects in the state... we are looking at the annual loss upwards of around Rs2,000 crore,” V. Venu, tourism principal secretary, told Mint in an earlier interview.
