In view of the growing demand for chilled beer as the temperature is on the rise, the Odisha Government has decided to slash its minimum retail price (MRP) from April 1.
To ensure that the volume of beer sale increases, corrective measures have been taken in the Excise Policy to make beer more affordable by reducing its MRP as it was found to be slightly higher than in the neighbouring States, said an official of the Department of Excise (DoE).
The sale of beer in Odisha dipped by over 40 per cent between April 2015 and January 2016 as compared to the previous corresponding period due to a deadlock with the beer suppliers vis-a-vis the new Excise Policy 2015-16.
With the new Excise Policy 2016-17, the State Government has taken the corrective measure, said DoE sources.
Some of the features of the new Excise Policy include stabilising MRP in the liquor trade, facilitating export of beer and IMFl, attracting investments for setting up of new breweries, distilleries and microbreweries and curbing illegal cultivation of cannabis.
In order to minimise the shortfall of off-take from the Odisha State Beverages Corporation (OSBC) depots, provisions have been made in the new policy to grant relief for the IMFl off and country spirit shops by setting a lower Minimum Guarantee Quota (MGQ) for the year 2016 -17.
Keeping in view the negative social impact that consumption of IMFl would have on the society, the DoE through the new policy has effected changes that would result in a slight increase in the MRP for IMFl.
The MRP of country spirit has also been increased slightly to curb the MRP violation and regulate its supply.
By reducing the cost of licence for setting up a new brewery, distillery or microbrewery, the new policy has placed emphasis on inviting investments to the State and additional revenue.
A sustained campaign against the illegal cultivation of cannabis (ICC) has resulted in positive reports of ICC not being repeated in the areas where the crops have been destroyed. In the coming financial year, budgetary provision has been made for campaign against ICC. However, the satellite imagery has not been utilised so far as the spectral signature protocol for cannabis is yet to be confirmed.
The IMFl off shops/CS shops and OS shops would be renewed as per the percentage increase in the licence fee as done during the previous year, i.e., 20 per cent and 12 per cent, respectively.
It is expected that an e-auction would be decided in the coming year, and the process may finally see the light of day subject to approval of the High Court, the sources added.