Strict norms in Liquor sales at Puducherry ahead of Assembly polls

Restriction in quantity of sale, ban on bulk purchases, among others placed in the Union Territory

Ahead of assembly elections in Tamil Nadu and Puducherry next month, strict norms have been implemented for liquor sales in the Union Territory of Puducherry.

Puducherry, being a Union Territory, comes under the purview of the Central Government. So it enjoys some perks and benefits. Some taxes like VAT aren't applicable in UTs for certain goods as a result of that.

Excise department official from Puducherry have said that they have put strict norms ahead of assembly elections at Puducherry and in the neighbouring state of Tamil Nadu.

The norms include restriction in quantity of sale. Liquor cannot be sold in bulk. Shops can sell only 4.5 litres of foreign Liquor and 9 litres of beer. Failing which shop/ bar license will be cancelled. Already the three bar licences have been cancelled for violating the rule.

The Department also said liquor can be sold only for cash. This comes on the backdrop of allegation that political parties are giving token, against which liquor can be consumed, to the voters. Ten check points have been set up between Puducherry and Chennai, to curb illegal transportation from Puducherry to Chennai.

The shops will be closed at 10 pm as against 11 pm from April 22.

The severe restrictions have been implemented and sales have been dropped to around Rs 30 crore from Rs 50 crore, said the official.

Puducherry Government runs on profits from Liquor. If it starts applying different taxes as in other states, the price of liquor will almost be the same as the neighboring states. Even though the economy of Puducherry depends to a large extent on the income accruing from duties on alcoholic beverages, the UT government has never tried to nationalize the liquor trade.

This has been true since the time of French colonization. One of the first distilleries in the union territory — Ariyankuppam — was established by the government itself over 100 years ago to produce arrack.

Across Puducherry there are about 300 bars operating. The state-owned PAPSCO, PASIC and Amudhasurabi run 40 retail outlets, but almost all of the Indian Made Foreign Liquor, arrack and toddy shops are owned by private parties.

The UT government annually earns around Rs 100 crore through licences granted to 130 arrack shops, 109 toddy shops and 417 IMFL outlets.

Excise revenue from liquor sales in 2014-15 was Rs 375.03 crore and the government's target for 2015-16 was Rs 560 crore.