Pros and cons of allowing doorstep delivery of alcohol in India

Source: The post pros and cons of allowing doorstep delivery of alcohol in India has been created, based on the article “On doorstep delivery of alcohol” published in “The Hindu” on 6th August 2024.

UPSC Syllabus Topic: GS Paper 2-Polity – Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: The article discusses the pros and cons of allowing doorstep delivery of alcohol in India. It covers revenue generation, potential reduction in drunk-driving, safety concerns, health risks, economic costs, and policy recommendations for managing alcohol consumption and related harms.

For detailed information on Alcohol Policies in India – Our hypocrisy on alcohol read this article here

Why Consider Doorstep Delivery of Alcohol?

1. Revenue Generation: Taxes on alcohol sales contribute up to 25% of all revenue in various States. For instance, India is the sixth-largest alcohol market globally, generating $52 billion in revenue.
2. Reducing Drunk-Driving: Doorstep delivery might reduce drunk-driving incidents. In India, 6-48% of fatal road traffic accidents are due to alcohol use.
3. Safety for Women: Doorstep delivery can help women avoid on-premise violence. Evidence from Kerala shows that shutting bars reduced violence against women.

What are the Arguments Against Doorstep Delivery?

1. Economic Costs vs. Benefits: Studies indicate that the costs due to alcohol use in India exceed the economic benefits from alcohol sales.
2. Behavioral Assumptions: Doorstep delivery assumes people will drink responsibly. However, this assumption lacks concrete evidence.
3. Increased Consumption: The availability of alcohol on-demand might increase consumption and promote binge drinking, leading to more alcohol-related harms.
4. Questionable Impact on Drunk-Driving: While reducing drunk-driving is a goal, other measures like sobriety checkpoints and stricter penalties are proven to be more effective.
5. Health and Economic Burden: Treating alcohol-related diseases and injuries could cost India over ₹3 lakh crore between 2011 and 2050. Including productivity losses, the total cost rises to ₹121.3 lakh crore. Revenue from excise taxes will cover only one-fifth of these financial losses.

What Can Governments Do?

1. Restrict Availability and Marketing: Governments can restrict the availability and marketing of alcohol.
2. Higher Taxes: Implementing higher taxes can help reduce consumption.
3. Enforce Drunk-Driving Laws: Enforcing laws and increasing penalties can reduce alcohol-related road traffic fatalities.
4. Invest in Treatments: Governments should invest in psychosocial treatments for alcohol-use disorders. This approach addresses the root causes and helps reduce long-term health costs.
5. Monitor Impact: Regularly monitor the impact of policies like doorstep delivery on alcohol consumption. Use data from service providers to assess the health and economic outcomes, adjusting policies if necessary.

Question for practice:

Evaluate the potential benefits and drawbacks of allowing doorstep delivery of alcohol in India.