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Sunday, May 15, 2016

Liquor Ban in Kerala

On August 24,2014, CM Oommen Chandy announced that state will implement prohibition in a phased manner.

 The decision was supported by the Indian Union Muslim League (IUML) and the Kerala Congress.

Liquor bars in Kerala had to renew licenses every year; the state government did not license any bar on 31 March 2014, resulting in the closure of 418 bars.

The state government also declared its intention of not renewing licenses of the remaining 313 bars in the state next year.

The state owned Kerala State Beverages Corporation (Bevco) has 338 shops, and Bevco will shut down 10% of them every year. Consumerfed, which has 46 shops, will also be closed.

While CM Chandy has definitely earned lot of applause from a section over 'liquor ban' in the state, he has also invited at the same time.

Thousands of bar workers lost their jobs, thus leading to a rise in unemployment, which was there already.

Tourism has been hit really really bad in the past one-year. 90% of the tourists stay in non 5-Star hotels and them not serving alcohol have discouraged many not to visit Kerala again in future.

The revenues from BevCo contributes a substantial amount to the revenue of the Govt of Kerala. Other sources would have to be found to fund this loss.

The state will also have to make up for the lost 40% revenues from alocohol taxes.

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