Beverages industry urges Meghalaya to put on hold proposal to set up sole wholesaler 

NEW DELHI: An alcohol beverages industry body has urged the Meghalaya government to put on hold the creation of Central Bonded Warehouse (CBW) as sole wholesaler for all alcoholic beverages products in the state until its commercial rationale and legality is validated.

In its letter to Sarika Aggarwal Synrem, Commissioner & Secretary, Excise Registration Taxation Stamps (ERTS) Department, a copy of which has also been sent to Meghalaya Chief Minister Conrad K Sangma, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged to "put implementation of the CBW on hold until the time its commercial rationale and legality is validated", a statement said.

Stating that the Meghalaya government has neither consulted stakeholders including the CIABC before introducing the CBW nor it has given reasons that warrant the introduction of this CBW in the supply chain, CIABC Secretary General Vinod Giri said, "CBW is an additional layer added in the distribution chain which will add to the cost of operation in the state.

"Current market structure is working fine without glitches and it is very unclear what purpose will CBW serve."

"It is commonly held principle that an additional cost must deliver additional benefit and the additional cost must be borne by the party which gets additional benefits. Therefore, if the CBW is being created by the Government for its own benefit, then its margin should come out of government revenues.

Alternatively, if it is being introduced for a benefit to the consumers, then this cost should be passed on to the consumers," the CIABC argued in its letter to the Meghalaya Government.