Chandigarh, March 14
Haryana’s new excise policy, which has dispensed with the auction system, has met with a good response. Almost 95 per cent of the vends of Indian made foreign
liquor (IMFL) have received more than one application. However, only 52 per cent of the vends of countrymade liquor have found takers in the first round of allotments.
The vends will be allotted through draw of lots on March 17. The authorities are confident that in the second round almost all vends will attract applicants.
The Chief Minister, Mr Bhupinder Singh Hooda, who also holds the Excise and Taxation Department, is not worried even if some of the vends remain unallotted even after the second round of allotments. Sources close to him say that the policy has achieved its main objectives — to break the monopoly of the cartels and provide employment to the local people not having much resources.
Even after the policy was made public, the sources say, the liquor lobby tried to bring pressure on Mr Hooda to revise the policy. While the cartel members did not contact him directly, representatives of the distilleries in the state met him and wanted certain concessions. They primarily wanted that no outside distillery should be allowed to supply countrymade liquor in Haryana. Their fear was that the outside distilleries could underprice it.
However, the sources say the Chief Minister told them that no concession could be given to them at this stage when the policy had been made public. He also pointed out to them that if an outside distillery could supply liquor at rates lower than theirs(even after paying export/import duty and transportation charges), why could the Haryana distilleries not reduce their price.
The distilleries were also told that with the decontrol of molasses, they would be getting a direct benefit of about Rs 100 per quintal. The controlled price of molasses is about Rs 350 per quintal, while the market rate is about Rs 250 per quintal.
Haryana’s policy has forced even Punjab to dispense with the auction system, which had created a major controversy in that state last year, with a liquor contractor virtually capturing the entire trade in the state.
Even last year, when Haryana had recorded an increase of about 17 per cent in its excise revenue, the Punjab Government had come under criticism from Congressmen, inimical to Capt Amarinder Singh, for the meagre increase in the excise collection. They had praised the Haryana Government before the party high command in this regard.
Interestingly, while the new excise policy of Haryana will definitely hit the liquor cartels, the biggest loser will be the political
leadership (read the Chief Minister). In the past it had been widely believed that the liquor auctions fetched a handsome amount for the political leadership. If it is true, by dispensing with the auction system, Mr Hooda has surely put a check on political corruption.
