{"id":198700,"date":"2022-08-04T18:41:18","date_gmt":"2022-08-04T13:11:18","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=198700"},"modified":"2022-08-04T18:41:18","modified_gmt":"2022-08-04T13:11:18","slug":"sober-liquor-policy-delhi-shows-why-all-states-need-smart-alcohol-regulation-and-100-private-retail-trade","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sober-liquor-policy-delhi-shows-why-all-states-need-smart-alcohol-regulation-and-100-private-retail-trade\/","title":{"rendered":"Sober liquor policy: Delhi shows why all states need smart alcohol regulation and 100% private retail trade"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cSober liquor policy: Delhi shows why all states need smart alcohol regulation and 100% private retail trade\u201d <\/strong>published in The Times of India <\/b>on\u00a04th<\/sup>\u00a0August 2022<\/strong>.<\/p>\n

Syllabus<\/strong>: GS 2 \u2013 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.<\/p>\n

Relevance<\/strong>: About alcohol regulation in India.<\/p>\n

News<\/strong>: A new retail liquor trade policy introduced in Delhi in 2021 saw state’s withdrawal from the retail trade. This resulted in e-commerce-like discounts, litigations and allegations of corruption. So, less than a year after the new policy, the Delhi government will switch back to the old state-dominated retail trade.<\/p>\n\n\n\n
Must read:\u00a0Prohibition of Liquor: Benefits and Challenges \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
About India’s unique alcohol market<\/h5>\n

India\u2019s alcohol market is characterised by two features. First, demand for alcohol seems impermeable to economic downturns. Second, alcohol catalyses moralising in India. These two features lead to alcohol\u2019s unique political economy. These include,<\/p>\n

1)<\/strong> It\u2019s highly taxed and along with fuel<\/strong> makes up about 24% of the state\u2019s own tax base. State taxes on alcohol raise around Rs 2.25 lakh crore a year. India\u2019s vast welfare system is funded partly by taxes on alcohol<\/strong>, 2)<\/strong>\u00a0States make the retail trade vulnerable to nationalisation<\/strong>. For instance, in Tamil Nadu, private retailers have been pushed out two decades ago, 3)<\/strong> There is corruption through licensing and regulatory distortions<\/strong> to favour handpicked manufacturers, 4)<\/strong> Prohibition<\/strong> is the most extreme form of distortion. Gujarat\u2019s hooch tragedy showed that the ban merely drives demand underground.<\/p>\n\n\n\n
Read more: Death by hooch \u2013 India needs a more honest discussion on the risks and benefits of prohibition<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What should be done to regulate alcohol?<\/h5>\n

Reforms in Alcohol regulation are pending long due. Manufacturers and retailers need a stable and transparent policy<\/strong> like any other industry. A stable policy will have a positive spin-off on agriculture<\/strong>, a key raw material supplier.<\/p>\n

India also needs a straight regulatory system and 100% private retail for alcohol<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cSober liquor policy: Delhi shows why all states need smart alcohol regulation and 100% private retail trade\u201d published in The Times of India on\u00a04th\u00a0August 2022. Syllabus: GS 2 \u2013 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Relevance:… Continue reading Sober liquor policy: Delhi shows why all states need smart alcohol regulation and 100% private retail trade<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10496],"class_list":["post-198700","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704955204},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/198700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=198700"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/198700\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=198700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=198700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=198700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}