West Bengal liquor wholesalers protest state foray in vending

Protesting against the state government's decision to foray into wholesale liquor trade, West Bengal Foreign Liquor Manufacturers Wholesalers and Bonders Association on Tuesday held a march demanding the rollback of the decision.

In a move which is opposite to what its neighbouring state Bihar did, the cash-strapped Mamata Banerjee government has set up West Bengal State Beverages Corporation to enter the liquor distribution business.

Holding banners with slogans of "roll back corporation - save liquor industry", protesters said the livelihood of 5,000 direct employees and 12,000 indirect employees would be at stake.

The association which said private wholesalers are working on a meagre gross margin of two per cent while retailers have a five per cent margin.

"How will government justify the infrastructure, personnel costs of a corporation and offering retailers a minimum 9 percent margin? Because, in any corporation market, the retail margin is 9 to 12 per cent and retailers have to bear the transportation costs as well as loading/unloading and in - transit breakages which currently are being borne by wholesalers," the association said.

Protesters also said around Rs 650 crore that was invested by the wholesalers would come under threat of turning into bad debts and affect the banking institutions as a major part of the investments was funded by the banks.

The state government decided to enter the liquor market to net additional revenue.

Wholesalers, however, said additional revenuesof Rs 100-150 crore could be generated within the existing wholesale system and not at the cost of 18,000 livelihoods.

--IANS

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