The state government had recently passed an order approving the retail sale of liquor through the state-owned company to generate revenue.
Reacting sharply, Sarangi, who is also an MLA said the government's move as "unfortunate" and "against the interest of the people" particularly tribal community.
He alleged that the government was now trying to set up additional infrastructure and hire people on contract for the purpose.
"Around Rs 1200 crore of revenue is generated in the state per annum through sale of liquor. The Jharkhand government should start casinos if revenue generation is its sole motive."
Advocating prohibition in Jharkhand, he wondered what was the compulsion for the government that was holding it from completely banning sale of liquor. Prime Minister Narendra Modi had himself imposed ban on sale of liquor during his tenure as Gujarat chief minister.
Modi had also praised Chief Minister Nitish Kumar for the prohibition in Bihar, he added.