liquor business has been hugely affected in the State following the demonetisation of the high-value currency notes. The business has declined to 50 per cent to 70 per cent in the licensed Government liquor shops, according to traders.
The liquor business has been hit in tribal districts as compared to Bhubaneswar, Cuttack and other urban areas of the State. Taking advantage of the demonetisation crisis in the rural areas, moneylenders are giving loans at high interest rates to the alcoholics. In some places, the moneylenders are making arrangement to provide liquor on credit.
This was reported especially from undivided Ganjam, Koraput, Sambalpur, Bolangir, Kalahandi, Sundergarh, Mayurbhanj and Keonjhar districts where alcoholics are consuming liquor by mortgaging their utensils, wives’ jwelleries and taking loans at high interest rates.
There were 1,798 liquor shops across the State during 2001-02, and the number rose to 3,843 by March 31, 2016. According to official reports, annually around 20 crore litre liquor transaction takes place through the licensed liquor shops.
As per the liquor licence guidelines, a ‘minimum guarantee quota’ (MGQ) has been fixed for each shop owner. The licence of the shop would be cancelled if the owner fails to sell as per the quota. Due to the demonetisation of Rs 500 and Rs 1000 notes, liquor shop owners are unable to meet the criterion.
Under this backdrop, excise revenue collection would be badly hit and the target to cross Rs 3,300 crore this fiscal is unlikely to be achieved, said official sources.
During 2015-16, the collection of excise revenue was Rs 2,568 crore, and this year it was expected to be Rs 800 crore more.
The liquor is supplied to the shops through the Odisha State Beverage Corporation (OSBC). The business of the corporation is considerably less during November in several districts compared earlier months.
The liquor sale has also slipped in hotels, restaurants and other ‘On’ shops.