Kerala Government Relaxes 2014 Liquor Ban

The Left Democratic Front government in Kerala allowed hotels rated three stars and above to acquire licences to serve alcohol, reversing the liquor ban policy of the previous Congress-led government citing revenue losses.

Apart from liquor licences to such hotels, the government will also give “eligible hotels” licences to sell beer and wine, state Chief Minister Pinarayi Vijayan said in a media conference. "Nowhere in the world can liquor prohibition be implemented completely", he said adding that the previous government's policy was a "complete failure".

The new liquor policy, which will come into effect from July 1, also set the operational timing of bars between 11 am to 11 pm, though in tourist spots bars can open an hour earlier. Toddy, a locally made palm-wine which had been banned earlier, will also be allowed to be sold in rated hotels.

Earlier this month, the state government had liberalised its liquor policy by dissolving the powers of the local bodies to regulate liquor outlets.

In 2014, the Congress-led United Democratic Front government had laid out a 10-year plan to make Kerala an alcohol-free state by phased closing of liquor shops across the state. Only five-star hotels were granted liquor licences.

Reversing the liquor policy was one of the campaign promises of the now incumbent LDF government when it won the state elections in 2016. It had pushed for a new liquor policy saying that the ban had led to a decline in the coastal state's tourism and caused huge revenue losses that would've come in through taxes on alcohol.

The Left Front, earlier in the day, had recommended that the government redraft its policy to enable re-opening of the more than 700 establishments that had closed following the 2014 ban. Kerala had the highest per capita consumption of alcohol in India before the ban was announced.

President of Congress' Kerala unit called the decision an "illicit relation between the liquor lobby and LDF", in a statement to wire agency PTI.

More Relief

Vijanyan acknowledged that the Supreme Court's order to ban liquor sales within 500 metres of national and state highways from April 1, 2017 would have adversely impacted employees of the affected establishments.

The government, to bring back jobs, will allow such establishments to be set up once again in the same district itself.

While the ban has been relaxed, the minimum age for drinking too has been raised to 23 from 21 earlier.