Alcohol revenue contribution in Indian Economy

 

Alcohol contribution in Indian Economy

India is the second largest country on the basics of population the estimated population of India is 1,380,004,385 people at mind at year according to 17.7 percent UN data. India is third largest alcohol market almost $35 billion.

 

According to Euromonitor international is estimated to expand 25 percent to 2.92 trillion rupees ($41 billion) by 2022.

 

A global study by Paris-based organization for Economic cooperation and development (OECD) has found that alcohol consumption in India has risen by 55 percent over a period of 20 years, from 1992 to 2012.

 

In 2016 Alcohol consumption is 5.38 billion liters, and is forecasted to reach 6.53 billion litter by 2020. But because of Covid-19 impact and lockdown the target of reaches 6.53 billion in quite impossible because during the lockdown the liquor market is closed for 40 days. And during the lockdown liquor market is suffered from grate losses. But in lockdown 3.0 all the liquor were opened and start selling liquor with high speed.

 

In Uttar Pradesh liquor market worth Rs. 100 crore sold in a single day. The Uttar Pradesh government has allowed the sale of liquor for 9 hours daily between 9 am to 6 pm with social distance norms being implemented at the shops.

 

In Karnataka the liquor market cross 45 crore of sales on a first day when shops are opened (4 may).

The state Excise department revealed that around 3.9 lakh litter of beer and 8.5 lakh liters were sold across the state on May 4.

 

According to Market recharge institution Europe mental international the consumption of liquor and growth of liquor industry is double in last 10 years.

In 2008 the consumption of alcohol is 16,098 lakh litter. And the consumption of alcohol is increase rapidly. In 2018 the consumption of alcohol is 27,382 lakh litter. In the data we are not consider Bear and Wine.

In the last 10 year the consumption of BEER is more the double and it’s continue increase. In the year 2008 the consumption of BEER is 10,000 lakh litter which increase in 2018 and reached at 24,250 lakh litter. Rise of 142 percent in last 10 year.

 

BEER CONSUMPTION

2008: 10,000 LAKHS

2018: 24,250 LAKHS

RISE 142 PERCENT IN 10 YEAR

 

As well As beer consumption the WINE consumption in also increase. In 2008 the WINE consumption is 113 lakhs crore and In year 2018 the consumption is 307 lakhs crore. Rise in 172 percent in last 10 years

 

WINE CONSUMPTION

2008: 113 LAKHS

2018: 307 LAKHS

RICE 172 PERCENT IN LAST 10 YEARS

 

In 2008 the consumption of VODAK is 362 lakhs litter and in the year 2018 the consumption of VODAK is 803 lakh litter. Rise 122 percent in last 10 years.

 

VODAK CONSUMPTION

2008: 362 LAKHS LITTER

2018: 803 LAKHS LITTER

RISE 122 PERCENT IN LAST 10 YEARS

 

Like WINE and VODAK the consumption of BRANDY is down. In year 2008 the consumption of BRANDY is 2,930 lakhs litter. And year 2018 the consumption of BRINDY is 5,650 lakhs litter. Rise in 92 percent in last 10 years.

 

BRANDY CONSUMPTION

2008: 2,930 LAKH LITTER

2018: 5,650 LAKH LITTER

RISE 92 PERCENT IN LAST 10 YEAR

WHISKEY consumption in India in year 2008 is 9,190 lakhs litter and in the year 2018 the consumption of WHISKEY is increased by 16,790 lakh litter. Rise 83 percent in last 10 years.

 

WHISKEY CONSUMPTION

2008: 9,190 LAKHS LITTER

2018: 16,790 LAKHS LITTER

RISE 83 PERCENT IN LAST 10 YEARS

 

The consumption on RUM is not increase, like others liquor (Whiskey, beer and brandy) the consumption of RUM in year 2008 is 3,310 lakh litter. And in the year of 2018 the consumption is increase by 3,880 lakh litter. Rise 17 percent in last 10 years.

 

On the basis of global consumption, the alcohol consumption per person annual average in 1990:

 

GLOBALY: 5.9 LITTER

INDIAN: 3.9 LITTER

 

In year 2017 alcohol consumption per person annual average is –

 

GLOBALLY: 6.5 LITTER

INDIAN: 5.9 LITTER

 

In India almost every state earn revenue through liquor market expect (Bihar, Gujarat, Manipur, Nagaland) in these four states liquor in completely banned.

 

Expect these fore stats all the stats earn high revenue and contribute higher percentage in GDP. On the basis of revenue Uttar Pradesh earns highest revenue through liquor market in the fiscally year 2019 to 2020 Uttar Pradesh earn 26,000 crores.

Share of liquor in state’s revenue

       

More than 20percent	15-20 percent	10-15 percent	Less than 10 percent	NILL
Karnataka	Chhattisgarh	Andhra Pradesh	Arunachal Pradesh	Bihar
Himachal Pradesh	Madhya Pradesh	Haryana	Assam	Gujarat
Meghalaya	Punjab	Odisha	Goa	Manipur
Rajasthan	Telangana		Jharkhand	Nagaland
Sikkim	Uttar Pradesh		Kerala
	West Bengal		Maharashtra
			Mizoram

 Alcohol revenue earn by different stats in fiscally year 2019 to 2020

 

STATE	EXCISE REVENUE (CR)	SHARE IN REVENUE (percentage)
Uttar Pradesh	31,517.4	21
Karnataka	20,950.0	20.6
Maharashtra	17,477.4	8.3
Madhya Pradesh	13,000.0	19.9
West Bengal	11,873.7	17.7
Telangana	10,901.0	15.7
Rajasthan	10,500.0	14.2
Andhra Pradesh	8,518.0	11.3
Tamil Nadu	7.262.3	5.8
Haryana	7,000.0	13.7
ALL STATWS	175,501.4	12.5

 Source: Reserve Bank of India

 

 

 Booze ban during lockdown cost states Rs.24,000 crore in 36 days. And 27,000 in just 40 days. One day loss is 679 crores.

 

(Source IANS_ARCH)

In India 12-13 percent Indian peoples drink alcohol. All India induration of medical sciences reports says 16 crores peoples in India drink Alcohol.

 

The RBI report shows that during 2019-2020, the 29 states and the UTs of Delhi and Puducherry had budgeted a combined Rs. 1,75,501.42 crore from state excise on liquor. This was the 16 percent higher than the RS. 1,50,657.95 crores they had collected during 2018-2019.