Prohibition in Kerala - The Way Forward !!
"For
every prohibition you create, you also create an underground"- Jello
Biafra
In the modern political-economy
discourse of India, we have the perennial "Sen-Bhagwati" debate which
compares and contrasts the Kerala model of development with the Gujarat model
of development. These are construed as entirely disparate models with zilch in
common. But in one way at least, the Kerala model is aspiring to follow the
Gujarati way of life. This ambition pertains to the controversial and much
debated realm of prohibition. This long essay aims to analyse threadbare the
multiple debates taking place with respect to prohibition in Kerala in a
pan-Indian perspective (A global example also thrown in, for good measure). The
moral, political and financial aspects of this issue are discussed in depth.
Prohibition
in USA :
Before we delve into
Indian concerns, we shall start with an example from world history. Mass
production of alcohol that happened in tandem with Industrial Revolution
ruffled not just conservative religious feathers but also created ripples in
those who saw alcoholism ruining public order and helping form a dysfunctional
labour force. An 1886 pamphlet published by the American writer David Locke
says that "Evils are to be killed, not regulated. The question today is
not whether the individual man shall have the right to poison himself, but
whether an organisation shall have the right by means of a poison to demoralise
mankind for profit … ”.
Such opinion gained
popular currency leading to imposition of prohibition in 1920 in USA. This did
not lead to paradise. Rather, it led to nurturing of a powerful underground
mafia that indulged in bootlegging and related illegalities. Thus, high ideals
gave way to pragmatism leading to repeal of prohibition in 1933. Now, we shall
move from Uncle Sam to more familiar terrain.[i]
Legal
and Constitutional provisions :
Alcohol prohibition in
India stems from the convictions and ideals of one of the greatest Indians this
soil has given birth to - Mohandas Karamchand Gandhi. His exhortations to his
fellow citizens in prayer meetings and periodicals regularly echoed in the
Constitutional Assembly debates from 1946 to 1949. The arguments were between a
case for societal reform and a case for individual liberty combined with
economic prudence. B.H.Khardekar's passionate speech against prohibition was
grounded in an argument for liberty : "In a free India, Sir, the
development of personality to its fullest extent is our aim and by frustrations,
prohibition, inhibitions, suppressions we are going to have a stunted growth in
the young men." Jaipal Singh provided a tribal argument when he argued
that Prohibition interfered with indigenous practice : "this … is a
vicious one. It seeks to interfere with my religious right. Whether you put it
in the Constitution or not, I am not prepared to give up my religious
privileges".[ii]
Deferring to Gandhian
concerns, a typically smart Indian compromise was made by adding a provision on
Prohibition and at the same time, rendering it toothless by placing it in the
non-justiciable section of the Constitution : Directive principles of state
policy. Article 47 of the constitution says that the State shall endeavour to
bring about prohibition of intoxicating drinks. Also, alcohol was made a state
subject under Schedule 7 of the constitution. Thus, Alcohol laws vary from
state to state.
Prohibition
in India :
The seeds of
prohibition in post-independence India were naturally sown in Gandhi's
jenmabhoomi - Gujarat. It actually
implemented prohibition in it's previous avatar as Bombay state itself and
later followed it when a separate state of Gujarat was carved out in 1960. Laws
there are so stringent that fatalities due to homemade liquor can bestow death
penalty on the culprits. Nagaland, parts of Manipur and Lakshadweep are other
Indian territories where liquor is banned. The efficacy of this policy in
Nagaland was underlined in 2013 when the then CM Neiphiu Rio accepted in the
floor of the legislative assembly that prohibition was a failure .Mizoram
followed prohibition for 17 years before giving up on it recently.
Nitish Kumar rode to
power in 2015 in Bihar due to
multiple reasons but promise of prohibition certainly was a pull factor with
respect to votes of rural women. Bihar government recently made an interesting
claim that because of prohibition (which was introduced in the first week of
April,2016) ,crime rates had reduced by 27 percent and road accidents had reduced
by 33 percent. But critics point out that this stringent measure is at the cost
of forgoing 4000 crore rupees as annual revenue and a soon-to-burgeon illicit
liquor industry.
An state which has had
a love-hate affair with prohibition is Kerala's neighbouring state of Tamil Nadu. Tamil Nadu introduced
prohibition as early as 1937 when C.Rajagopalachari, a passionate votary of
prohibition, was the premier. An on-off game began with prohibition after
Independence. Karunanidhi, the then Chief Minister, repealed prohibition in
1971 on revenue grounds . Later, the government itself took liquor trade from
private hands and started more liquor shops to cater to it's welfare schemes (
which are derided as manifestation of freebie politics by economists). This has
seen severe popular backlash especially from women and hence, political parties
are promising prohibition in their manifestoes for 2016 elections.
Similar withdrawals
were seen in the case of Andhra Pradesh
and Haryana too. Chandrababu Naidu
was the Chief Minister of Andhra Pradesh who lifted prohibition which was in
vogue from 1994 to 1997. The chief minister justified lifting prohibition on
the grounds that it led to corruption in the enforcing authorities, especially
at the lower levels of police and that it led to illicit trade of liquor.
Similarly, the Bansi Lal government in Haryana withdrew prohibition after 19
months realising that the costs of prohibition are exorbitant.
God's
own country, tippler's own paradise :
Having dealt with other
Indian examples, the essay moves to God's own country and how it tries to
grapple with the issue of alcoholism. When the name Kerala is mentioned, lots
of images crop up in one's mind : picturesque beaches, lush greenery , monsoon
rains, empowered women , vibrant trade unions and Mohanlal. To this, one must
add the ubiquitous image of long queues of lungi-clad men in front of a liquor
shop on a weekend morning.
A report prepared by
Johnson, the director of a Trivandrum based alcohol awareness group points out
that annual per capita consumption of Kerala was as high as 8.3 litres in 2008.
This figure is higher than even Punjab's which is portrayed in pop culture as a
booze capital. The national average was a paltry 5.7 litres.[iii]
A 2011 report by ASSOCHAM, a renowned trade body concluded that Kerala
contributed to around 16% of national alcohol sales. It must be remembered that
these include only legal sales and illicit trade is a different proposition
altogether. A 2014 study by community medicine experts reveals that nearly 30
percent of Kerala's population aged above 18 consume liquor, about one-third of
this section being heavy drinkers.
Despite strong social
movements (including ones lead by the great Narayana Guru) which have
propagated anti-alcohol messages, alcoholism in Kerala has become a serious
problem in recent times. A serious sub-category which needs to be addressed is
the phenomenon of binge drinkers who do not drink alcohol every day but drink a
large amount of alcohol in a short time. Economist reports about a bar owner in
Thrissur who confesses that a single customer will comfortably drink 6 pegs of
alcohol (which amounts to 60 ml shots) in 60 minutes. Kerala has an indigenous
heritage in tippling that can be traced even to sacred spaces. Devotees offer
hard liquor to local deities in North Kerala (For eg. Muthappan, the deity of
Parassinikadavu). [iv]
New
liquor policy,2014 :
In 2014, the United
Democratic Front government led by Oommen Chandy came up with a new liquor
policy as part of it's strategy to tackle the alcohol menace which was eating
into the soul of Kerala. The government's orders meant that liquor bars will be
restricted to five star hotels. Sunday was declared a dry day .Thus, the
government decided not to renew the licenses of 418 bars which had expired in
the month of March,2014. Kerala States Beverage Corporation, colloquially
referred to as BEVCO by locals , is a public sector undertaking owned by the
Government of Kerala and has a monopoly over vending of alcohol across the
state -both retail and wholesale. the state's nearly 400 BEVCO shops will be
closed down at the rate of 10 percent per year. Thus, the government has
decided on a policy of phased prohibition whose effect will be seen in a ten
years' time.
In 1996, the country
arrack was banned and arrack shops were closed down by the then A.K.Antony
government. This led to an outburst in the popularity of Indian Made Foreign Liquor
( abbreviated as IMFL) . The bar hotels dished out an annual amount of Rs.10
lakhs as license fee then which grew into almost 23 lakhs in 2013. By the end
of 2014, these nearly 700 licensed bars were shut down .This left bar business
open to merely 18 five star hotels across the state. With respect to toddy
whose liquor content is lower than that of beer, the policy remains benign
allowing toddy trade to continue. There are around 6000 toddy shops in Kerala.
Thus, the traditional occupation of palm tapping remains untouched.
Reception
to the policy :
The announcement of
this policy was welcomed by sections by religious and political denominations
in Kerala. The Christian churches of various denominations applauded this
policy vocally and so did the Muslim leadership which includes Muslim League, a
member of the ruling coalition. Similarly, there has been positive approbation
from lower middle class and poor women who have been subjected to domestic
violence and financial instability owing largely to their husbands' binge
drinking. Though some leaders did have their reservations on whether pragmatic
economics has a place for prohibition in it, they could not voice their
concerns publicly as the public sentiment was in favour of curbs on alcohol.
Supreme
court's approval :
In December 2015, the
Supreme Court passed it's judgement on the legality and validity of Kerala's
new liquor policy. The supreme court upheld the government's policy by stating
that the state government must be given a free rein to ensure that the public
consumption of alcohol is curtailed so as to promote public health. The Supreme
Court also decreed that exemption provided to five star hotels alone is not a
violation of that vital fundamental right of equality guaranteed under Article
14 of the constitution. The court came up with reasons to validate this : That
consumption in five star hotels is a mere .08 percent of the overall
consumption and also that the prices in such places is prohibitively high which
discourages binge drinking. The court also clearly said that even this
exemption to five star hotels is given only for the cause of tourism.
Drug
abuse :
The fall in alcohol
consumption can have other kind of effects also as seen in Kerala. There has
been an increase in the use of cannabis and other high-end party drugs like cocaine,LSD,nitrazepam
etc and this increase can largely be traced to the younger population alone.
Against around 700 drug abuse cases in Kochi in 2015, 250 cases were registered
in Kochi in the first few months of 2016. This clearly shows that prohibition
does not lead to individual discipline but a thirst for even more sinister ways
of intoxication. The high purchasing power of the youth (which is a welcome
thing) is ironically contributing to such skewed forms of crimes in the state.
De-addiction
:
If the state wants to
have an effective prohibition policy, functional and well-equipped de-addiction
centres across the state are mandatory. Kerala does not have sufficient number
of de-addiction centres yet. For instance, a single de-addiction centre caters
to the needs of affected people in West Kochi and Kollam. Without effective de-addiction
centres, people deprived of their usual dose of alcohol will resort to looking
for illegal or underground trading options or worse, can go for lethal drugs
and worsen their health badly.
Impact
on tourism sector :
26% of the state
revenue flows from Kerala's vibrant tourism industry immortalised in one of the
greatest marketing taglines ever - "God's own country". Hoteliers
across the state make a strong claim that the new liquor policy will have an
adverse effect on the state's tourism prospects. Shashi Tharoor wrote in a
column that 50 percent of the conventional bookings in Kerala for the winter of
2014 had been cancelled after the new liquor policy was announced. Though this
sounds a bit exaggerated and there could be many other reasons for cancellations,
this is an interesting observation nonetheless. [v]
On the other hand,
state government officials from the department of tourism claim that there is
no reason for fears of this policy affecting tourism at all and there are
provisions for applying for an one-day licence is case of special conventions
or meetings. The Rs.25000 crore tourism industry in Kerala has been a huge
propeller of the state's prospects and there has been a five percent increase
in the inflow of tourists in 2015 ,a vindication of state government's claims
that tourism will not be affected by paucity of liquor in bars.
Impact
on services sector :
Kerala has not
transformed itself into a big player in the services and knowledge sector like
how Bengaluru, Hyderabad and Chennai in neighbouring states have done. Kerala's
rise as a services hub depends largely on how the state welcomes the companies
and it's employees. It must be said that the thriving pub culture in Bengaluru
is due to the fact that the employees in software and other sunshine industries
get to unwind in the evenings after a long day at work. Thus, Kerala's new
liquor policy may be a minor yet notable hindrance to Kerala's aspirations in
the services sector.
Effect
on state finances :
Whenever prohibition is
discussed, the revenue angle comes into the picture immediately. Excise duties
on liquor are a vital source of revenue for the state government ,contributing
almost 22% to the state revenue. The Kerala model is touted as a successful
welfare state model with enviable social development indicators in every sector-be
it health or education. This has been achieved largely through a series of
interventionist government schemes which take care of a citizen's wellbeing from
cradle to coffin. 60 percent of the state's own tax revenue is spent in funding
the salaries of state employees and teachers alone. The minimum wage for a
labourer in Kerala is the highest in India. To pay for these welfare
initiatives, a strong revenue net is needed which is largely provided by
tourism and excise tax on alcohol. If these two sources of revenue are
jeopardised, the welfare model of the state might itself collapse.
Does
prohibition work ?
To consider the
efficacy of prohibition ,one must
consider the example of Gujarat which is officially "dry". An
investigation by Frontline magazine reveals some dark truths which show that
letter of the law and the situation on the ground are polar opposites. A
resident in Ahmedabad reveals that a drink is a phone call away and as easy to
acquire as a pizza. The wealthy in
Gujarat can afford to get IMFL delivered to their doorstep while the poor
resort to locally brewed country liquor. The unofficial guesstimate of the sale
of IMFL in Gujarat is between Rs.500 crores to Rs.1000 crores. This means that
people still keep drinking and only the revenues from it are deprived from the
state government. Leading campaigners agree that the prohibition in Gujarat is
a failure. So much for being a dry state ![vi]
Conclusion
:
In economics ,we come
across this dichotomy of "good decision, bad outcomes" and "bad
decision, good outcomes". Prohibition has historically been proven to be
of the first kind. Alcoholism is a social menace which has led to multiple
effects on both private spaces and public sphere. But prohibition cannot be a
solution to the menace. The individual wants cannot be curbed by a state diktat
and hence, the person will try to tap into illegal sources for satisfying his
bibulous needs. Once a parallel illegal network is set up, the state is losing
vital revenues. Illegal trade naturally does not have to conform to stringent
standards which can lead to fatalities and brutal health outcomes.
Thus, the solution to
alcoholism lies in effective awareness campaigns aimed at the individual and
not phased prohibition. In ten years' time ,we might have almost complete
prohibition in Kerala as envisaged by the current regime. But lessons from
history suggest that it won't work. The solutions to alcoholism are many but
the most successful solution will be the one which realises that the state
cannot provide a solution to every problem.
Note : This essay was written before the change of guard at the helm on 19th May,2016.
Note : This essay was written before the change of guard at the helm on 19th May,2016.
[i] VARGHESE K.GEORGE. (2014). Prohibition down
the ages. [Online]. August 2014. Available from :
http://www.thehindu.com/sunday-anchor/liquor-ban-prohibition-down-the-ages/article6365412.ece?utm_source=InternalRef&utm_medium=relatedNews&utm_campaign=RelatedNews
[Accessed : 14th May,2016]
[ii]
VARGHESE K.GEORGE. (2014). Prohibition down the ages. [Online]. August 2014.
Available from :
http://www.thehindu.com/sunday-anchor/liquor-ban-prohibition-down-the-ages/article6365412.ece?utm_source=InternalRef&utm_medium=relatedNews&utm_campaign=RelatedNews
[Accessed : 14th May,2016]
[iii]
THE ECONOMIST.(2013). Drinking in Kerala.[Online].March 2013.Available from : http://www.economist.com/blogs/banyan/2013/03/drinking-kerala.
[Accessed : 14th May,2016]
[iv]
E.P.UNNY(2014).The unhappy hour.[Online].August 2014.Available from : http://indianexpress.com/article/india/india-others/the-unhappy-hour-2/
[Accessed : 14th May,2016]
[v]
SHASHI THAROOR.(2014). The Risks of an Alcohol Ban for God's Own Country.[Online].August
2014.Available from :
http://www.ndtv.com/opinion/the-risks-of-an-alcohol-ban-for-gods-own-country-by-shashi-tharoor-657176
[Accessed : 14th May,2016]
[vi]
FRONTLINE.(2015). Dry only in name.[Online].May 2015.Available from :
http://www.frontline.in/cover-story/dry-only-in-name/article7098311.ece.
[Accessed: 14th May,2016]
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