Thiruvananthapuram: In order to break the monopoly of companies which have been distributing liquor to the state for years, the Kerala State Beverages Corporation Limited has invited more companies which do not have any contract with the monopoly at the moment.
The BEVCO has decided to enter into a rate contract with these companies in January 2022. The move comes in the wake of the pressure applied by liquor companies by reducing liquor supply in protest against the BEVCO directive to remit excise duty directly.
So far the BEVCO used to deposit in advance the excise duty which the companies owed to the state government. This practice was against excise rules, but the state entity did so to help the liquor companies.
The new Chairman and Managing Director of BEVCO, S Shyamsundar, has stopped this practice and directed the liquor companies to directly remit the excise duty. The BEVCO informed the companies that it would return the amount the very next day the liquor consignment was delivered to its warehouses.
However, in protest against this BEVCO decision the liquor companies cut down liquor supply. As many as 15 companies across India supply 90 percent of the liquor that is sold by BEVCO across Kerala. Compared to 1 lakh cases per day, the companies provided only 37,000 cases as part of their protest. After slapping notices on these companies for violating the contract, the BEVCO decided to conclude deals with new alcohol manufacturers in other states.
The BEVCO authorities have already got in touch with some companies based in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Representatives of three companies from Andhra Pradesh recently arrived in Kerala and held discussions with the BEVCO authorities.
Consumers gain, expect enough stock
The favourite brands of Keralites might witness a change as BEVCO starts to procure spirits from new firms. The popular brands of other states is expected to appear on BEVCO shelves.
The BEVCO has plans to open at least one more warehouse in each district to stock more liquor.
With more options for BEVCO, there will be no scarcity of liquor during the upcoming festival season when the demand peaks. No shortage of liquor is expected during the upcoming Christmas and New Year season even if the existing suppliers continue with its pressure tactics.
Currently, stock that can last for one-and-a-half months are in the BEVCO warehouses.
Kerala excise minister has convened a meeting of officials of the taxes department, excise and BEVCO on December 13 to discuss the ways and means to overcome the non-cooperation of liquor companies.
