Punjab’s smaller liquor contractors fear excise policy may render them jobless

Also, the policy states that the L-1 licence, meant for wholesale dealer of liquor, would be granted to only those who have experience of at least two years in wholesale distribution of liquor in India and a minimum annual turnover of Rs 30 crore in wholesale distribution of liquor business in each year of at least two years out of immediately preceding three years in a state/UT of India. Earlier the existing size of groups was in the range of Rs 7 to Rs 8 crore.

With these two riders that the tender would be given to a group worth Rs 30 crore and L-1 licence also to a wholesaler with a turnover of Rs 30 crore, it is being felt that the smaller traders, who do not have a turnover in crores, cannot be a part of the business.

A liquor contractor on anonymity said, “This is a tailor-made policy to help the big fish in the trade, especially from other parts of the country. In Punjab, not many contractors would fall in the category that can claim licence or tender.”

The state’s liquor contractors’ association had already criticised the government before the policy was rolled out. The contractors have been saying that this would also mean that there would be fewer employment opportunities in liquor business as many small contractors would be weeded out.

The government, however, on Thursday sought to clear its stand on the issue.Punjab’s excise commissioner Varun Roojam said that the result-oriented new excise policy would nail the liquor mafia in the state, besides checking smuggling of liquor from neighbouring states.

Defending the bigger groups, he said that these have been drastically reduced for optimum realisation of the revenue and for getting the benefit of economy of scale. He said that during meetings with the licensees before formation of the excise policy, it was the demand of existing retail licensees that the size of group should be larger than the existing size (Rs 7-8 crore) and should be in the range of Rs 30 crore. He further said that this would minimise inter-group rivalry, which is rampant generally when the size of the group is small, adding that it would also help in removing unscrupulous elements from liquor trade and bringing efficiency in the business.

The excise commissioner said that in new policy, the number of vends throughout the state has been kept same and therefore, even if, the number of groups has decreased, the employment opportunities remain the same in retail sector.

He said that this policy envisages creation of new employment opportunities for the people of Punjab from liquor-related manufacturing sector. He said that the licence for setting up distilleries, bottling plants and breweries has been reopened and the policy has also allowed setting up of malt manufacturing units in Punjab with emphasis on setting up of new ethanol plants, all of which will open new vistas of employment for youth.