Effect of Liquor ban on states and the Nation

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Recent ban of liquor sale near state and national highways has affected many people, directly or indirectly. Given below are some facts and figures detailing out what exactly has happened due to this ban.

• Chandigarh hoteliers claim Rs. 3 crore loss in the first weekend.
• Kerala eyes options, including seeking 3-month exemption.
• Sunday no flow in 500 Mumbai restaurants and bars.
• UP state highways turn district roads to circumvent Supreme Court’s liquor ban.
• Rajasthan too re-designates roads.
• 3,000 liquor licenses not renewed in Goa; Parrikar assures of solution.

What authorities have to say?

• “The obvious impact is that a number of outlets have to close,” said Shekhar Ramamurthy, managing director of United Breweries, the country’s largest beer maker. “When that happens, consumption comes down.”
• Niti Aayog CEO Amitabh Kant put the jobs at risk at 10 times that number. “Tourism creates jobs. Why kill it? Supreme Court’s highway liquor ban verdict may hit 1 million jobs,” he tweeted.
• Liquor sales in India slowed to 0.4% in the first nine months of the financial year, the slowest growth in a market that’s been expanding rapidly since 2001, with a compounded annual growth rate of over 12% in the decade to 2011.
• With over a third of liquor outlets located around national and state highways, disruption will be significant, brokerage CLSA said in a recent report. “Given restrictions around educational and religious institutions, migration may be a tough task and could take a while,” it said.
• The CLSA report said: “We expect heightened volatility in USL volumes, margins and profitability as the company gears up for this ban, and a higher impact on lower-end brands.”
• USL sells in close to 60,000 outlets across the country and the ban could affect about a third of those. “Our industry checks suggest that the ban has affected 30-40% of the outlets,” said a research report by broking firm IIFL Institutional Equities.