Bihar will go dry from April 1, 2016, Nitish Kumar announced on Thursday. The chief minister made the announce... Read More

PATNA: Within a week of taking charge as Bihar chief minister for the fifth time, Nitish Kumar on Thursday announced his pre-poll pledge of banning liquor in Bihar will come into effect from April 1, 2016, a move expected to lead to a revenue loss of nearly Rs 4,000 crore for the cash-strapped state.

Months before the assembly elections were announced, Kumar had promised women who had led protests against alcoholism that he would ban liquor if voted to power.

Once the ban is enforced, Bihar will join Gujarat, Manipur, Nagaland and Lakshadweep which have total prohibition. Kerala is also exploring the option of limiting liquor sales to fight alcoholism.

Addressing his first public meeting after assuming office, Kumar said liquor would be banned even if it meant a huge loss to the state exchequer. The news of the ban rattled the shares of liquor companies at Bombay Stock Exchange. Shares in United Spirits closed down 4.7% while distiller Radico Khaitan ended the day down 7%.

“As I promised women of Bihar, I have decided to ban liquor from April 1,” Kumar said at a function to mark ‘No Alcohol Day’.

On November 20, the day he was sworn in, Kumar had said he had directed the chief secretary to formulate a policy on prohibition. “It won’t be correct to comment further on the issue at this moment,” he had said to thunderous applause.

The CM admitted the government would lose Rs 3,500-4,000 crore in taxes every year due to the liquor ban. “But, when I compare this loss with the adverse impact alcoholism causes to the poorest of the poor, I feel my decision is absolutely correct,” said Kumar.

Although the CM did not give details whether both country liquor and IMFL (India-made foreign liquor) would be outlawed, sources said the ban would cover the sale, purchase and consumption of liquor.

“The nitty-gritty would be decided during the process of formulating the policy,” a senior IAS official said, admitting that the CM’s directive was, as of now, a “tad vague.”

The CM hailed the anti-liquor campaign started by self-help groups (SHGs) of women in different parts of the state and directed excise and prohibition officials to award the SHGs which successfully prevented sale of liquor in their villages.

“I would request these groups to help the government enforce the ban once it is ordered,” he said in an oblique reference to a similar ban which was ordered in 1977-78 but which could not be enforced effectively.

Times View

It’s unfortunate that once again a state has fallen prey to the temptation of imposing prohibition because it seems like a popular thing to do. Several states in India have experimented with prohibition and discovered the hard way that it doesn’t work. All it does is to push what was a legitimate business into the realm of the shady and criminal. It deprives the state of precious tax revenues, which is something Bihar in particular can ill afford. Instead, bootleggers make tons of cash which is then funneled into other criminal activity. To believe that this can be a recipe for improving social realities is to fool oneself.