A controversy has erupted in Kerala over the state government’s decision to approve a brewery unit in Palakkad district, with the opposition Congress alleging the company has ties to the Delhi liquor policy case. The government has denied these accusations, insisting that all necessary guidelines were followed in granting permission. The Kerala cabinet approved Oasis Commercial Pvt Ltd to establish the brewery in Elappully, Palakkad, under the condition that it adheres to all regulatory requirements. However, Congress leader Ramesh Chennithala criticized the decision, arguing that it bypassed the tender process and violated a 1991 government order that prohibits issuing new brewery licenses in the state due to concerns over groundwater depletion.
The controversy has intensified with the state government’s move to supply water from the Malampuzha Dam to the brewery, drawing strong opposition from farmers and activists. A 2018 High Court order had restricted the dam’s water use to agricultural purposes after meeting irrigation needs, yet the government had previously proposed allocating 10 million liters daily for industrial use. The plan was stalled following a legal challenge by a farmer, with the court emphasizing that the dam was crucial for irrigating 22,000 hectares of farmland. Farmers argue that with water shortages already affecting crops, diverting additional resources to the brewery could severely impact agricultural productivity in the region.
Concerns among farmers have grown as Palakkad heavily relies on Malampuzha Dam to sustain its paddy fields and meet drinking water needs for seven nearby panchayats. The irrigation department currently supplies 96 million liters daily for drinking purposes, and farmers fear that any further allocation to the brewery could force them to import rice to meet local demand. Given the ongoing water shortages and reduced availability for irrigation, they have urged the government to prioritize agricultural interests over industrial expansion to avoid jeopardizing food security in the region.
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