The love for alcohol among Malayalis remains unwavering, as the introduction of a cess and subsequent price hike failed to dampen their spirits. Despite plummeting fuel sales due to the government’s revenue-focused measures, alcohol consumption has continued to soar.
Last November, the state cabinet decided to raise the sales tax on liquor by four percent. A few months later, the budget introduced a per-bottle cess of Rs 20 for Indian-Made Foreign Liquor (IMFL) priced between Rs 500 and Rs 999, and Rs 40 for bottles priced above Rs 1000. Surprisingly, these changes had no impact on the sales of foreign liquor.
Although there was a slight decrease in the volume of liquor sold to bars and Consumerfed, the rise in sales through BEVCO outlets more than compensated for it.
Between April and June 15 this year, Kerala State Beverages (Manufacturing & Marketing) Corporation Ltd supplied 11.36 lakh cases of foreign liquor to bars and Consumerfed, slightly lower than the 11.48 lakh cases in the same period last year. However, the volume of liquor sold through BEVCO outlets increased to 35.45 lakh cases during the same period this year from 32.48 lakh cases the previous year.
Here are the liquor sales figures from April to June 15, following the introduction of the cess: 11.36 lakh cases of foreign liquor and 14.88 lakh cases of beer were sold to bars and Consumerfed, while BEVCO outlets sold 35.45 lakh cases of foreign liquor and 11.77 lakh cases of beer. The total sales during this two-and-a-half-month period amounted to Rs 4,091.61 crore, with an average monthly sale of Rs 1,636 crore.
In March 2023, bars and Consumerfed received 5.06 lakh cases of foreign liquor and 7.17 lakh cases of beer, whereas BEVCO outlets sold 15.60 lakh cases of foreign liquor and 4.63 lakh cases of beer. The increase in alcohol consumption in March can be attributed to sales push ahead of the end of the financial year. Liquor sales in that month reached a value of Rs 1,556 crore.
While the government imposed a cess of Rs 20 per bottle of Indian-made foreign liquor priced between Rs 500 and Rs 999, and Rs 40 for bottles priced above Rs 1,000, the cess for bottles sold through BEVCO outlets was set at Rs 30 and Rs 50, respectively. The price after adding the cess included the sales tax and turnover tax.
In contrast, fuel sales in the state declined after the imposition of a social security cess of Rs 2 on petrol and diesel from April 1 onwards. Petrol sales decreased from 21.21 crore litres in March to 19.73 crore litres in April, a shortfall of 1.48 crore litres. Diesel sales dropped from 26.66 crore litres in March to 20.28 crore litres in April, resulting in a shortfall of 6.38 crore litres.
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