Demonetisation affects liquor business in Odisha

Bhubaneswar: The demonetization of Rs 500 and Rs 1000 by the union government has its effect on liquor business in Odisha.

Sources said the business has declined to 50-70 percent in licensed government liquor shops as they were not accepting the demonetised notes.

The liquor business also affected in tribal dominated districts against the business in Bhubaneswar, Cuttack and other towns of the state.

As the boozers are also facing difficulties to raise a toast even after having money, some money lenders are lending loans at high interest rate to the alcoholics.

In some places, the profit mongered money lenders are making arrangement to provide liquor on credits, sources added.

This was reported especially from undivided Ganjam, Koraput, Sambalpur, Bolangir, Kalahandi, Sundergarh, Mayurbhanj and Keonjhar districts where the alcoholics are consuming liquor by mortgaging their utensils, jewelry and taking loans at the high-interest rate, sources said.

There were 1798 liquor shops operating across the state during the 2001-02 financial year. The number rose to 3843 by 31 March 2016.

According to the official report, annually around 20 crore liter liquor transaction takes place through the licensed liquor shops.

As per the liquor license guidelines, a ‘minimum guarantee quota’ (MGQ)  has been fixed for each liquor shop owner.

The government apprehends that the target to generate revenue from the liquor business may affect. It has set a target to collect Rs 3300 crore excise revenue this fiscal.

During 2015-16, the collection of excise revenue was Rs 2568 crore.