Will Kerala's Beverages Corporation Succeed in Pushing for Online Liquor Sales?

Synopsis
Key Takeaways
- BEVCO proposes online liquor sales to reduce crowding.
- Proposal faces legal challenges and government opposition.
- Customers aged 23+ can order online with ID verification.
- Potential revenue growth from online sales is anticipated.
- Kerala has a significantly lower number of liquor outlets compared to Tamil Nadu.
Thiruvananthapuram, Aug 10 (NationPress) The Kerala State Beverages (Marketing & Manufacturing) Corporation Limited (BEVCO) has reiterated its plan for home delivery of liquor via online sales, despite the state government's continuous refusal to revise the Abkari Act to facilitate this change.
The proposal, presented to the Excise Department by BEVCO Managing Director Harshita Attaluri, was inspired by an offer from food and grocery delivery service Swiggy to deliver liquor directly to customers' homes.
Attaluri mentioned that upon government approval, a tender process would commence, and the contract would be awarded to the lowest bidder.
Customers aged 23 and above would be permitted to place orders, with strict ID verification required to confirm age, and all products available at BEVCO outlets would be accessible online.
The Managing Director emphasized that the main objective of this proposal is to minimize the crowding often seen outside liquor outlets, a frequent occurrence in Kerala that leads to traffic issues.
She pointed out that while Tamil Nadu has approximately 4,700 liquor shops, Kerala has only 283 outlets, resulting in long waiting times for customers.
Introducing online sales, she asserted, could redirect a substantial number of customers to the platform, alleviating congestion at physical stores.
Additionally, the corporation anticipates that home delivery could enhance sales revenue.
BEVCO's revenue for 2024–25 was Rs 19,700 crore, an increase from Rs 19,050 crore in the preceding fiscal year.
Attaluri expressed firm belief that online sales could significantly boost these figures.
However, officials from the Excise Department have indicated that the proposal encounters legal hurdles.
Liquor sales in Kerala are governed by the Foreign Liquor Rules, 1953, and the introduction of online sales would necessitate amendments to the Abkari Act along with new regulations, all of which require state government approval.
Officials confirmed that a similar proposal was previously considered and declined.
During the Covid-19 pandemic, Kerala temporarily permitted online liquor sales through a virtual queue system, supported by a dedicated mobile application.
Currently, BEVCO oversees the sale and distribution of Indian Made Foreign Liquor, beer, wine, Foreign Made Foreign Liquor, and Foreign Made Wine in Kerala, operating 26 warehouses and 283 retail outlets, with 155 featuring self-service or premium counters.
Liquor sales remain a crucial source of tax revenue for the state, with collections increasing from Rs 8,778.29 crore in 2016–17 to Rs 15,170.82 crore in 2023–24.
Despite BEVCO's determination, the state government's resistance to modifying the Abkari Act leaves the future of online liquor sales in Kerala in doubt.