Tuesday, March 13, 2012

REIGN OF LIQUOR-ToI-24.2.12


Whether it’s the exchequer of the state or politics, liquor funds it all, finds G a n e s h S L a k s h m a n


Hyderabad: Literally, the state of Andhra Pradesh runson liquor.From financing the electoral campaigns of politicians and ensuring their lavish lifestyle through the existence of the liquor syndicate,liquor helpsthestate government go about its business by being the second highest revenue earner after sales tax. 
    In the 2012-13 financial year, the state government expects to earn Rs 14,000 crore through the sale of liquor and implement allits projectsincluding thewelfare schemes. During the same period, the liquor syndicate comprising politicians, state government officials and retailers are expected to pocket about another Rs 10,000 crore, all at the cost of morecitizensof thestateturning into alcoholics with each passing day. 
    “Sale of liquor has been a major source of revenue for the state in the last three to four decades. As a consequence, the government’s policies are encouraging many to become alcoholics, which in turn causing severe financial stress on many families. Over seven million families are experiencing the pernicious impact of liquor consumption in the state. Tens of thousands of women are suffering because as the men folk spend the family's scarce resources on liquor, and then subject them to domestic violence. All this warrants rigorous control of liquor in the state,” said Loksatta MLA Jayaprakash Narayan, whose party has been at the forefront of curbing the liquor trade in the state. 
    The state did experience a brief period of prohibition in the mid nineties but saying thatthe revenue mobilization has been hit due to the prohibition policy, successive governments ensured that liquor flowed. 
    Soon after returning to power during an anti-Congress wave due to the anti-liquor agitation in the state, chief minister NTRama Raoimposed prohibition in the state on January 16, 1995 and his sonin-law Chandrababu Naidu continued the policy after taking over as chief minister by dethroning NTR. 
    But on April 1, 1997, Naidu lifted the prohibition. His contention was that the sale of liquor was fetching as much as Rs 3,000crore per annum tothestate andthe same can be spent on various welfare scheme in the state. Although former chief minister Y S Rajasekhara Reddy had criticized Naidu for lifting prohibition, it was during the successive Congress regimes that the liquor syndicate in fact grewleaps andbounds andspread its tentacles into every nook and corner of the state. 
    Since then, the liquor business has been flourishing in Andhra Pradesh. From a revenueof Rs 924crorein 1998-99, the money that the state made through thesaleof liquor shotup toRs4,125crore in 2007-08.“Butwhatiscausefor concern is the loot of the people by the liquor syndicate with the blessings of the state government. In no other state in the country does such a nexus exist,” said an official once connected to the excise department. 
    For example, the state has already earnedRs16,250crorethroughthesaleof liquor in the current financial year which is slated to end in March 2012. According to the sources, the liquor syndicate comprising politicians, state government officials, retailers etc made another Rs 8,000 crore from the unsuspecting buyers. 
    “All across the state, the retailers sell liquor about 50 per cent to 70 per cent over the MRP. The maximum violations take placein Srikakulam,Vizianagaram and Visakhapatnam, followed by Guntur, Prakasam and Nellore. While East and WestGodavari andKrishna districts are next in the list. In effect, Rs 8,000 crore collected by the liquor syndicate from the peopledoes notcometothestate coffers but ends up in the pockets of the politicians, excise, ACB, police officials and the retailers,” said the sources. 
    Ironically, the cost of producing the liquor that fetched Rs 16,250 crore in 2011-12 is said to be a mere Rs 1,000 crore. But what many in the state government sayisthatsincetheliquor syndicateisso powerful,itwillbe very difficulttotakeit on. “If almost three-fourths of the Congress MLAs and many from the opposition are partof thesyndicate,whowould dare to challenge them,” said an official. 
    Butthankstothe recentACB raids, at least the existence of such a huge racket has come under public scrutiny, he admitted. 
    POWER OF 
    THE BOTTLE 

•From a mere Rs 924 cr in 1998-99, the revenue through liquor sale shot up to Rs 4,125 cr in the state 2007-08 

•In 2012-13, the state expects to earn Rs 14,000 cr through sale of liquor 

•The liquor syndicate comprising retailers, politicians, officials, etc expected to earn another Rs 10,000 cr during the same period 

•Retailers sell 50% to 70% over and above the MRP across the state resulting in additional burden of Rs 8,000 cr on the unsuspecting public.

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