New Delhi, May 8 : As the lockdown restrictions were eased, Indians seemed particularly cheerful about liquor shops being thrown open, however conditionally, in most parts of the country.
But long serpentine queues, states levying astronomical taxes and some states like Maharashtra not allowing sale in half of the state proved the jubilation was somewhat premature.
On a day when the apex court observed that the government should consider home delivery of liquor, the liquor body, Confederation of Indian Alcoholic Beverage Companies (CIABC), went a step further, suggesting the government may eventually think of using food delivery apps to home-deliver alcohol.
The liquor body's Director General Vinod Giri, in an interview to IANS, said he believes the Arvind Kejriwal-led Delhi government is "actively working" on such options in the national capital.
However, he added that the 70% tax levied can prove "counter productive".
Excerpts of the interview:
Q: Chhattisgarh has started home delivery of liquor. Now a BJP spokesperson in Delhi too has demanded the same for Delhi? Do you see it happening?
A: We believe that the COVID pandemic is forcing us to change the way we live and conduct business.
Reducing human-to-human interaction is an essential part of the strategy against the virus. This challenge is even greater in alcoholic beverages where the number of outlets are far too few to cater to the large customer base.
Home delivery system is a very effective way of taking a significant number of people away from outlets, and will help in the fight against Corona.
With today's technology it is quite easy to implement a robust system with little scope for misuse, and we think more and more governments will seriously explore it.
As far as Delhi is concerned, we believe the government is actively working on such options that take the load off the shops.
This is a matter of common good and we expect the support for this to be bi-partisan. We are glad to see the leader of the Opposition has also suggested it.
Q: There are reports of food delivery apps trying to get a pie of home delivery of liquor.
What do you think?
A: Given their understanding of relevant technology and established delivery systems in similar trade spaces, app-based food delivery companies are well placed to play a role.
However, a lot will depend on the models the government employs, i.e. whether they patch it on the current distribution system or add fresh play. Governments may start conservatively and open up as understanding of operations improves.
Q: Half of Maharashtra districts are not permitting liquor sale. How seriously can it impact their revenue collection?
A: It is a matter of concern for the industry.
Maharashtra is a large market. We also believe shutdowns are not a solution. Liquor is no different from any other popular product, and authorities should open the trade with due precautions like in case of any other product.
It is our experience that crowds thin down quickly if a large number of outlets are open, and they remain open for long hours.
A case in point is Gurugram which has seen no rush at outlets and all rules of social distancing having been followed.
Q: An argument is being made by a section that at the cost of pushing citizens to alcoholism, many state governments are going out of their way to open liquor shops for revenue generation.
Do you agree?
A: Liquor is a legitimately traded product. All these shops were selling liquor legally before the lockdown. If the governments start opening liquor outlets also, along with other outlets as lockdown is relaxed, where is the question of preferential treatment? In fact, governments have been much more severe on liquor outlets which is evident in limited opening up of the trade.
We should bear in mind that the ban on liquor was three weeks longer than that on many other products, so there is no question of states going out of the way to open liquor shops.
Q: Are you concerned Delhi's decision to hike duty on liquor to 70% could be counterproductive?
A: We understand that the government is in dire need of revenues, but we think that such steep increases will be counterproductive over time.
Delhi has a porous border with many states, where the prices are much lower. We are afraid that this kind of price difference will give rise to illegal smuggling of liquor from neighbouring states, thus defeating the objective of increasing revenues.
Q: Has the lockdown given a boost to the illegal liquor market?
A: Any kind of prohibition on alcohol has always led to a thriving illegal market.
Here too, there have been reports of liquor smuggling as several seizures show. There have also been reports of locally made illicit alcohol which is a serious health threat. We hope that trade is normalised at the earliest so that such unlawful activities stop.
--IANS
abn/prs.
Source: IANS
