The figures with the State Excise Department reveal that in July the sale of IML increased from 13,80,000 cases per month in June this year to 25,08,708 cases in July.
The sale of Indian Made Liquor (IML) has doubled in Karnataka since July 1, the date from which manufacture and sale of arrack in the State was banned.
In one month alone, sale of IML sky rocketed, especially in the cheap segment of liquor. The figures with the State Excise Department reveal that in July the sale of IML increased from 13,80,000 cases per month in June this year to 25,08,708 cases in July.
One case contains approximately nine litres of liquor.
“The increase in sales is due to arrack ban. The arrack consumers have switched over to cheap whisky. The cheapest liquor available in the market is priced at Rs 28 for 180 ml. The rise is highest in this segment and quantity of liquor,” said a senior Excise officer.
Ten districts in Karnataka recorded 100 and more than 100 per cent increase in IML sale last month. Out of them, Tumkur and Bijapur top the list recording 108 per cent increase in sales, followed by Gulbarga (105 pc), Bangalore urban (104.8 pc), rural (104 pc), Mysore (104 pc), Dharwad and Kolar (103 pc), Mandya and Raichur (102 pc) and Udupi (100 pc). The figures discredit the Government’s notion that with the arrack ban, people would stop drinking.
“On the contrary, the trend shows that arrack consumers have switched over to IML. There’s a huge demand of quarter bottles of cheap liquor. Distilleries now need more vats for maturing liquor. Also, there’s a scramble for glass bottles of quarter capacity. Some of the top brands have already started bottling and selling liquor in tetra packs, mainly to counter the shortage,” said another officer.
The Excise target for the year 2007-08 is Rs 3,300 crore, half of which has already been realised from April to July. “In April, the department revenue was Rs 103.28 crore, Rs 115.19 crore in May, Rs 230.61 crore in June and Rs 147.02 crore in July. The June revenue was high because of arrack rentals that Government received,” said the officer.
But not all liquor retail shops are doing bumper business. “The IML shops near the arrack shops are doing great sales because they cater to the middle and lower segment of people. The high end retail stores have not recorded much of a difference because they cater to a different clientele,” said a IML retailer.
A low end retailer confessed his sales had increased by 65 per cent in one month alone. “Our sales have picked up hugely. A retail store on Hosur Road is minting money. His July earning doubled, from Rs 45,000-50,000 earlier to Rs one lakh,” said the retailer.
With the demand for more IML the department is under pressure to issue fresh licenses to CL2 (retail) and CL9 (pubs and bars) licensees. “Our hands are tied because Government has so far not announced any policy on issuing fresh licenses. Some of the sick distilleries have also applied for revival. These used to manufacture low end liquor,” the officer added.
