The Rs 5,000-crore liquor industry may be growing rapidly, but is facing problems in many areas related to advertising, prohibition policy and excise-related issues, that vary from state to state. These issues are having a negative impact on the industry. Recently, the liquor industry majors decided on an ethical mode of advertising in the Capital. The reason was the government's view that excess and unethical advertising increases the intake of liquor.However, I do not agree with this as the brands being advertised are the top-of-the-line brands and the consumers are well aware of the pros and cons of excessive drinking. Yet, to improve upon it, the industry has chalked out some guidelines for advertisements and has submitted them to the government.The Delhi state advertising law states that if a product is aired and seen in the state, then it cannot be sold in Delhi. Due to this law, many companies have withdrawn their products from the Delhi market and are airing them for meeting the exportobligations. Well, this law is very funny as I do not see any logic behind it. The government, however, feels that it will encourage drinking.The Delhi market is important, so it affects us. Such a law does not prevail in any other part of the country. Still, the industry has taken up a responsible role as a good corporate citizen.After all, the overall growth of the economy depends on the industry and not on agriculture, as it has been witnessed in the developed countries abroad. I hope that with the liquor industry adopting an ethical way of advertising, the Delhi government may review the advertising policy.The other problem the industry is facing is that of erratic excise laws which vary from state to state. For instance, in Uttar Pradesh, the excise laws are around 100 years old. Since the last 20 years or so we have been asking the government to review it, but nothing has happened so far. In UP, there are not less then 20 people from the excise department visiting the factory. An excise personalso has powers to close down the factory for any reason he feels like. In UP, a product cannot be bottled unless the gate is opened by an excise person. All this leads to corruption and the industrialists have to bend at some point.Why such a mess? After all our industry is a revenue paying industry? We have been asking the government to go for gate control which is more transparent with lesser corruption. Excise laws are prevalent in other countries also but they are very systematic. For example, Scotland has excise laws which are very well organised.Prohibition is another problem which the industry faces from time to time. Though not a major problem, the Government should not impose Prohibition. At least not after allowing so many multinationals in the industry. But generally the industry is not threatened by Prohibition as we are aware that it does not stay for long. For example, in Haryana it came as a shock. But it all got over in time. Still, if something of the kind happens in the future, ourhands would be tied yet again.(The author is Vice Chairman & Managing Director of Radico Khaitan Ltd.)
