The Comptroller and Auditor General, in its latest report on state revenues, has pulled up the state government for not ensuring that alcohol being sold in the state is tested by the Food Safety Officer (FSO).  The CAG states substantial grounds to enforce the norms. It cites relevant norms under the Foreign Liquor Rules and Food Safety and Standards (FSS-Alcoholic Beverages) Regulation, 2018 in the report.

The CAG's demand for quality analysis of liquor rests on the definition of 'Food' in FSS act, which states that alcoholic drink is also a food item. It also notes that the act empowers the FSO to take samples of any food (including liquor) intended for sale. Further, the Foreign Liquor Rules, 1953, mandate that liquor sold or kept for sale must be of good quality, unadulterated, and free from any additives intended to increase its intoxicating power. Kerala Distillery and Warehouse Rules, 1968 also say that colouring/ flavouring materials and essences used in liquor manufacture must be approved by the Commissioner of Excise and kept under the custody of the officer in charge of the distillery.

When the CAG officials checked the records on manufacture of liquor, it was proven that samples were not taken for analysis by the FSO. Also, raw materials other than spirit and their proportion were not approved by the Commissioner of Excise and were not under the custody of Excise department.

The CAG report said non-testing of liquor sample by the FSO compromises the quality assurance framework. "Use of raw materials like colouring and flavouring agents without prior approval from the Commissioner of Excise, and their exclusion from the Excise department’s custody, indicates significant regulatory oversight," the report states.

In its defence, the Government replied that the liquor is dispatched for sale only after obtaining the chemical analysis certificate from the Government Laboratory. "Since the Abkari Rules do not contain any provision authorising the Food Safety Department to collect liquor samples, the Excise Department is not in a position to enforce such regulations. However, necessary instructions have been issued to Excise officials to ensure compliance with FSSA standards in Distilleries, Bottling Units, and Breweries," the government said in the reply.

The CAG found this untenable. According to the CAG, the observation pertains to the non-approval of raw materials other than spirit by the Commissioner and those were not under the custody of the Excise department. Moreover, the authority for taking samples by Food Safety Department is governed by the provisions of the Food Safety and Standards Act, 2006, the CAG report cited. 

The CAG's observation, however, contradicts the assembly records. In February 2026, then Health Minister Veena George was asked the same question on yearly quality checks of liquor. The reply showed samples were taken by the FSO from all the districts for quality analysis between 2016 and 2026. Statutory and surveillance samples were also taken during the same period. The Minister, however, didn't disclose the results of the quality analysis.