Andhra Cabinet Decision On Prohibition Today

An Andhra Pradesh cabinet meeting today is expected to take a final decision on the dry law.

Though a change in the dry law is a foregone conclusion, a decision is to be taken whether the existing prohibition law should be relaxed suitably or be scrapped altogether. Based on this decision, a bill will be prepared by the law department.

What Chief Minister N Chandrababu Naidu has so far been toying with was a mere relaxation in the dry law prohibiting public drinking and allowing consumption of Indian-made foreign liquor (IMFL) only in star hotels and licensed clubs.

Two dry days every week and retailing IMFL though very limited shops run by the Breweries Corporation with a high incidence of state excise are the other steps contemplated.

But now political pressure is mounting on Chief Minister Chandrababu Naidu to retain the ban only on arrack.

In rural areas and small towns, liquor shop owners command considerable influence among the voters. In the past, liquor trade invariably was in the hands of Congressmen.

An argument advanced is that by mere doubling or even trebling the excise duty on IMFL, the government could not expect to mop up substantial revenue. Such a measure will only result in large scale smuggling of liquor from neighbouring sates where the excise duty is low. In a state like Andhra Pradesh surrounded by five sates which are wet, checking of smuggling would not be possible. It would thus prove counter-productive.

Another issue to be decided is the timing of the announcement. One view is that while moving the demand for grants for excise and prohibition, the minister could make the announcement and allow discussion on the issue. A bill can be moved later and adopted without much acrimony.

Another suggestion is that the bill should be introduced soon after the appropriation bill is adopted.