Brewers body calls for Bihar liquor policy reset

The Brewers Association of India (BAI) has urged the Bihar Government to undertake a comprehensive review of the State’s liquor prohibition policy, arguing that the law has failed to eliminate alcohol consumption while creating severe social, economic and administrative consequences.

In a letter to Bihar Chief Minister Samrat Choudhary, BAI Director General Mr Vinod Giri has stated that Bihar stands at a critical policy crossroads and has an opportunity to replace “an ineffective prohibition model with a socially responsible and economically sustainable regulatory framework.”

BAI, the apex body representing India’s largest beer manufacturers, including AB InBev, Carlsberg and United Breweries, said the evidence accumulated over the last decade suggests that prohibition has merely shifted alcohol consumption from regulated and taxed channels to an underground and unregulated economy. Representing India’s largest beer manufacturers, including AB InBev, Carlsberg and United Breweries,

BAI pointed out that over 11.3 lakh cases have been registered and more than 17 lakh people have been arrested under prohibition laws since 2016, while illegal liquor seizures continue to rise year after year.

The Association argued that the policy has diverted enormous police and judicial resources toward enforcement while organised bootlegging networks have expanded across the State.

Calling the fiscal implications of prohibition “staggering”, BAI estimated that Bihar has foregone up to Rs 60,000 crore in excise revenues over the last decade, in addition to losses suffered by hospitality, tourism, logistics and ancillary industries.

BAI has proposed a phased and carefully regulated approach focused on moderation and harm reduction.

Its recommendations include introduction of low-alcohol beverages such as beer and wine as the first step, limited rollout in urban areas and economic zones with good regulatory oversight, adoption of alcohol-content based taxation models to encourage lower-strength beverages, creation of dedicated funds for de-addiction programmes and rehabilitation services and mandating allocation of over 50 per cent of the factory floor jobs to women to support their economic empowerment, amongst others.