Chhattisgarh polls: Major issue in 2018, liquor ban a non-starter this time

The elections in Chhattisgarh have concluded, but neither the ruling Congress nor the Bharatiya Janata Party (BJP) promised a ban on liquor in their manifestos, an issue that had sparked public debate before the polls.

In the run-up to the Assembly elections, liquor prohibition emerged as a crucial issue, with even Prime Minister Narendra Modi criticising Chief Minister Bhupesh Baghel for not implementing a ban. The ruling Congress had promised a liquor ban during the 2018 Assembly elections.

The substantial revenue generated from the liquor industry appears to be the major reason that prevented parties from promising a ban.

The Chhattisgarh government is targeting to earn Rs 8,300 crore from excise duty in the financial year 2023-24. Until October, the excise revenue from liquor -- amounting to around Rs 4,554 crore -- was 30 per cent higher compared to the year-ago period, the department officials said.

This figure, however, dipped in the election month. Although the department aimed to collect Rs 600 crore in November, it has only managed around Rs 310 crore so far.

Officials attributed the decline in sales to the alleged free distribution of liquor during the elections. Chhattisgarh reportedly leads the nation in per capita liquor consumption, with a rate of 35.6 per cent, followed by Tripura at 34.7 per cent, and Andhra Pradesh at 34.5 per cent.

In 2022-23, the state government collected Rs 6,700 crore in revenue from liquor, surpassing the target by Rs 100 crore.

The Baghel government had initiated the process by forming a high-level committee to study liquor prohibition, which included a visit to Bihar to study its successful model and a discussion with Chief Minister Nitish Kumar. However, the committee’s report was shelved.

“It is not easy for the state government to ban liquor and choke a big source of revenue, especially when it requires huge money for the freebies and subsidised schemes,” said a former excise commissioner.

He said a total ban could be possible if the government increases receipts from other sources, such as mining.