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While hoteliers cry foul, liqour manufacturing sector unmoved by SC ban

19,April, 2017


With the Supreme Court of India issuing an order banning the sale of liquor from all vends and establishments, including restaurants and hotels on national and state highways, the hotel and restaurant industry is crying foul. However, the liquor manufacturing industry appears to be unmoved largely. Even their shares appeared to be be doing steady business, as some state governments, including that of Madhya Pradesh, stating that they would stop liquor sale in a phase-wise manner.
Also, according to the All India Distillers’ Association (AIDA), there has been no report of any dip in the manufacturing of liquor by the companies. According to an AIDA official, the companies making liquor largely based on molasses derived out of crushed sugar cane.
“And they have the option to divert their business to some other business, like ethanol, for the time.  Secondly, many state government have started denotifying the highways, and the impact, if any, will be visible in some time from now,” he said.
Sale and production drop
Meanwhile, Raviraj Talwar, retailer from Newasa, Maharashtra, said, “The sales have taken a steep dip since the ban was imposed, and there has been an almost 50 per cent drop in the sale and production of country liquor and Indian-made foreign liqour (IMFL).” However, his claim wasn’t corroborated by AIDA.
Another industry representative stated that there wasn’t any immediate effect of the SC order. He added, “April is the month of renewal and re-registration, and usually sale remains low. We have to wait at least for May figures to see what impact it has on the sale, and subsequently on the manufacturing.”
The value of the alcohol market is pegged at Rs 40,000 crore.

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