Protesting against the state government's decision to foray into wholesale liquor trade, West Bengal Foreign Liquor Manufacturers Wholesalers and Bonders Association on Tuesday held a march demanding the rollback of the decision.
In a move which is opposite to what its neighbouring state Bihar did, the cash-strapped Mamata Banerjee government has set up West Bengal State Beverages Corporation to enter the liquor distribution business.
Holding banners with slogans of "roll back corporation - save liquor industry", protesters said the livelihood of 5,000 direct employees and 12,000 indirect employees would be at stake.
The association which said private wholesalers are working on a meagre gross margin of two per cent while retailers have a five per cent margin.
"How will government justify the infrastructure, personnel costs of a corporation and offering retailers a minimum 9 percent margin? Because, in any corporation market, the retail margin is 9 to 12 per cent and retailers have to bear the transportation costs as well as loading/unloading and in - transit breakages which currently are being borne by wholesalers," the association said.
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Protesters also said around Rs 650 crore that was invested by the wholesalers would come under threat of turning into bad debts and affect the banking institutions as a major part of the investments was funded by the banks.
The state government decided to enter the liquor market to net additional revenue.
Wholesalers, however, said additional revenuesof Rs 100-150 crore could be generated within the existing wholesale system and not at the cost of 18,000 livelihoods.
--IANS
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