Kerala looks to boost local liquor production

Thiruvananthapuram, Oct 23 (IANS) Kerala Excise Minister M. B. Rajesh on Thursday called for a significant increase in local liquor production, highlighting the potential to not only meet domestic demand but also explore export opportunities.

The minister, however, acknowledged that local opposition may arise but stressed that such concerns should not impede progress.

Despite the presence of nine distilleries in the state, no liquor is being produced by them, he noted.

"The state has the capacity to produce its own liquor, yet some vested interests are actively opposing local production," he said.

Concerns over water availability have also been cited, but Rajesh questioned their validity, pointing out that Kerala’s water situation is not markedly different from neighbouring Karnataka.

He emphasised that the government will not bow to vested interests and indicated that some controversial measures might be necessary to move forward.

On the policy front, Rajesh advocated for a five-year liquor policy, noting that the current system of annual policy formulation has created uncertainty for the industry.

"The absence of a long-term liquor policy discourages investors and industrialists from setting up operations in Kerala," he contended.

The minister added that the unpredictability over whether the policy would change in the following year has been a major concern for manufacturers.

He further highlighted that a long-term policy would provide stability and predictability, encouraging both domestic production and potential exports.

Discussions on formulating such a policy are reportedly underway, signalling the government’s intent to create a more investor-friendly environment for the liquor industry.

According to government data presented in 2023, Kerala's consumption is actually lower than some other states, at 12.4 per cent compared to the national average.

Minister Rajesh’s statements underscore a shift in Kerala’s approach to liquor production, balancing industrial growth with regulatory oversight while confronting entrenched opposition.

With both policy and production reforms on the horizon, the state aims to transform its liquor sector into a sustainable and economically beneficial industry.

--IANS

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