No Alcohol Sales In Karnataka On November 20 Amid Liquor Merchants’ Strike

The Federation of Wine Merchant Associations in Karnataka has announced a suspension of liquor sales on November 20 as a form of protest against what they describe as government corruption and neglect towards their grievances.

This move is anticipated to result in a significant financial loss for the state, with projections estimating around Rs 120 crore in lost revenue.

The association's decision stems from their frustration over the government's issuance of new liquor licenses, which they argue exacerbates competition and disregards existing regulations. This, coupled with alleged widespread corruption within the excise department, has made it increasingly difficult for many merchants to sustain their operations, despite contributing substantial amounts annually to the state's coffers.

On a related note, the Karnataka State Tourism Hotel Owners' Association has made it clear that it will not participate in the shutdown called by the liquor merchants. This differentiation in stance highlights the varying impacts the proposed bandh is expected to have across different sectors within the state.

The federation's demands are multifaceted, aiming not only to address immediate challenges but also to bring about systemic changes within the industry. They are calling for a merger of the Excise Department with the Finance Department, arguing that this would streamline operations and enhance oversight. Additionally, they have requested a meeting with the chief minister to directly address their concerns and propose solutions to curb the corruption they allege is rampant within the Excise Department. Among their specific demands are a guaranteed 20 per cent profit margin on all retail liquor sales, the permission for alcohol sales in CL-2 licensed retail shops, the allowance of additional counters in CL-9 licensed bars and restaurants, and a general optimisation of rules regarding alcohol takeaways.

This move by the Federation of Wine Merchant Associations signifies a critical juncture for Karnataka's liquor industry, highlighting the tensions between the government and the merchants. B Govindaraja Hegde, the federation's general secretary, emphasized the direness of their situation in statements to the media. He expressed hope that the bandh would raise awareness about the issues plaguing the industry, including what he describes as unchecked competition and government inaction. According to Hegde, the overwhelming support for the protest from within their ranks, with expectations of 85 to 90 per cent participation, underscores the depth of discontent among the merchants.

In tandem with these developments, it's noteworthy that on November 19, Mumbai will also see a halt in alcohol sales due to the state assembly election. This simultaneous occurrence in two major Indian cities underscores the broader regulatory and political challenges facing the alcohol industry in the country.