Don't do away with wholesalers: wine merchants

The Federation of Wine Merchants' Association of Karnataka has urged the state government not to do away with the system of selling liquor through private wholesalers.

General secretary of the federation B Govindraj Hegde told reporters in Dharwad that the government's move to eliminate private wholesalers will jeopardise the wholesale business and give room to unethical practises in the liquor business.

Hegde said that the government was trying to take over the wholesale liquor business when it began earning a higher revenue.

The introduction of a new excise policy in 2003 by the S M Krishna government was the result of the federation's persistent pressure to reduce the taxes on liquor and enable an increase in revenues. The reduction in taxes had resulted in an increase in the sale of liquor by five times and that had made the present government consider taking over the business, Hegde said.

He said that the government, with an eye on increased revenue had decided to hand over the wholesale liquor business to the Karnataka State Beverages Corporation Limited and it may further consider taking over the retail sale too. This will hit over 21,000 wine merchants and lakhs of people directly or indirectly employed in the trade, he asserted.

He expressed apprehension that the liquor manufacturers will dominate the scene leaving the consumer with not much of a choice and give room to corruption. The federation has demanded an increase in the margins, a reduction in taxes and licence fees.