Kerala government faces shaky ground over proposed low-proof liquor salelow-proof liquor sale policy
Kerala's United Democratic Front government faces political criticism for proposing the sale of low-proof starter drinks at a lenient 120% tax rate in the 2026-27 budget instead of the 250% levy on hard liquor.
Opposition parties and some within the Congress argue this move could encourage alcohol consumption and benefit private companies. The government's shaky position reflects a social and political minefield, with the decision expected to follow further talks with coalition partners.
Opposition Critics
Opposition critics argue that reducing taxes on low-alcohol beverages could encourage higher alcohol consumption and primarily benefit private liquor companies rather than the public.
Kerala Excise Minister
The Excise Minister states that the low-alcohol beverage concept originated from the previous LDF government's 2022 policy, with Abkari Rules amended to reflect this change in 2023.
- Kerala's alcohol policy has historically been stricter than many other Indian states due to high social reform movements.
- Low-proof beverages are often marketed as "starter drinks" to young consumers to introduce them to alcohol consumption gradually.
- The 2022 liquor policy was the first major reform by the LDF government in over a decade regarding alcohol licensing in Kerala.
