No cheers for alcohol, beverages during this lockdown
image for illustrative purpose
In India, the alcohol and beverages sector, once considered recession-proof, also faced its share of declining sales, given that it does not fall under the category of essential commodities.
Almost 70 per cent of alcohol distribution in India happens through liquor vends or shops, while 30 per cent happens on the premise, in bars, pubs, hotels, and restaurants. The latter has continued to stay low, given continued social distancing norms and the fact that most units are slowly re-opening with limited staff and bartenders. With the situation still far from normal, mixologists have largely been confined to their homes with little to no new work opportunities.
Digitisation has been an integral part of these developments and has proved that while nothing can replicate meeting and greeting in person, there are still fun ways to do things from a distance. Another trend that may see huge traction is cocktail kits. Restaurants, bars, and other outlets will have cocktail kits on their takeout menus in the coming year. These kits may contain all ingredients and instructions to create similar cocktails that can be enjoyed at home.
The States in 2019-20 had budgeted for Rs 1.70 lakh crore through tax on sale of liquor, which is 7.6% of their total own tax revenue. In 2020-21, the total tax collection from sale of liquor was expected to be Rs 2 lakh crore.
In most States, taxes from liquor sale account for 15-25 per cent of the State's own tax revenue. In states like UP, Karnataka and Uttarakhand, tax from sale of liquor accounts for over 20 per cent of the State's own tax revenue. In states like West Bengal, Chhattisgarh, Himachal Pradesh, Punjab and Telangana, State excise accounts for 15-20 per cent of the States' own tax revenue.
In some States like Kerala, Maharashtra and Tamil Nadu tax on liquor account for less than 10% of the State's own tax revenue. States like Gujarat and Bihar earn no revenue as liquor is banned in these States. In Tamil Nadu government-run TASMAC liquor shops have been permitted to operate between 8 am and noon till May 20.
Perhaps for the first time in Karnataka, liquor vending units will officially be kept open from 6 a.m. from Wednesday till May 12. The Karnataka government issued orders allowing liquor outlets to open for takeaway between 6 a.m. and 10 a.m.
GM Breweries producers of government country liquor informed that closure of liquor stores across Maharashtra may impact the company's sales during April 2021. It added that trade bodies have made a representation to the government to permit sale of country liquor online, door delivery and parcel. A decision in this regard is expected soon.
