ECONOMICS OF ALCOHOL IN KARNATAK

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					                              Chapter - V


       ECONOMICS O F ALCOHOL IN KARNATAKA IN THE
      BACKGROUND O F THE INDIAN ALCOHOL ECONOMY

      In the previous Chapter a detailed discussion on the sampling design
and sample framework of the study is presented. A brief profile of the Indian
alcohol economy is presented in this chapter a s a prelude to the discussions
that follow in Chapter VI a n d VII which present the micro level data analysis
in this connection.


      This Chapter provides a brief account of the alcohol industry, market,
taxation a n d consumption with reference to Karnataka a n d India (wherever
information is available). In section 5.1 we discuss drinking in the framework
of provisions under Indian Constitution and Indian Penal Code.


      Opening u p of the Indian economy since nineties h a s obviously cast a
great influence on the culture a n d life style in the country. Incrcased demand
for fast foods/packed foods/ready foods, emergence of cafeterias and pubs to
a large extent is generally considered to by many observers as being due to
the influence of globalization a n d entry of Multi National Companies (MNCs)
into India. As a member of WTO, Indian government is bound to reduce
import tariffs, which is likely to increase inflow of foreign liquor in to the
country. During the British rule, use of alcohol was common in the parties of
the white collar job holders, the officers of British India a n d the army. But,
now alcohol is being poured into the glasses of many-the youngsters working
in different fields including software techies, business executives a n d
students in urban areas. Alcoholic drinks are being sold in departmental
stores under the name of light drinks/beverages. It is becoming a part of
social lifc particularly in metros posing serious challenges to India's social
life, economy a n d health.
      In rural areas drinkers continue to be fed by the arrack supplied under
government license. The availability of arrack, which is cheaper than other
alcoholic drinks, draws more consumers. The term "fed" is used here because
it is found that drinkers depend on arrack alone if nothing is available for
eating as it fills empty calories.


      WHO          Global      Status         report      on      alcohol        (1996)
(www.who.int/substance abuse 2005) presents adult per capita annual
consumption (pcac) of pure alcohol in India to have increased from 0.45 litres
in 1970-71 to 0 . 9 3 litres in 1994-96 showing a n increase by 106.67 percent
during just a quarter of a century! The paac was 0.99 litres in 1996
comprising of 0.04 litres of beer and 0.95 litres of spirits. The consumption of
wine was not significantly noted among adults.


5.1 Drinking and the Law
       Indian    leaders were        aware   of   the   adverse   effects   of   alcohol
consumption. Gandhiji was the one who advocated prohibition of drinking.
The framers of the Constitution realized that government action is necessary
to control the menace of alcohol. The declaration in Article 47 of the Indian
Constitution states that "The State shall regard the raising of the level of
nutrition and the standard of living of its people and the improvement of
public health as among its primary duties a n d in particular the State shall
endeavour to bring about prohibition of the consumption except for
medicinal purposes of intoxicating drinks and of drugs which are injurious to
h e a l t h (GOI, 1996: 14).


       In India alcohol is a state subject and alcohol industry is regulated by
state governments, which are responsible for production, distribution, levy of
excise duties and taxes on alcohol and also for prevention and management
of alcohol abuse in the state. Since alcohol industry generates huge revenue,
alcohol policies are generally influenced by political a n d economic interests.
The seventh schedule of the Constitution empowers t h e State governments to
impose tax on "alcoholic liquors, opium a n d narcotics, etc." These taxes are
referred to as State excises.


      Here we reproduce the legal provisions under the Indian Penal Code,
1860 relating to drinking, adapted from Gupta (2002:40-42). Gupta quotes
comments of Basdev (1956); Davis (1881); Tandy (1989), a n d Bheleka (1902)
on Section 8 4 (not included in our bibliography as the reference adopted
from Gupta 2002). We have elaborated here the reading referring only to
drinking (excluding explanation on first, second a n d third points that are
stated below). Section 8 4 of the Indian Penal Code, 1860 reads "Nothing is a n
offence which is done by a person who, a t the time of doing it, by reason of
unsoundness of mind, is incapable of knowing the nature of the act, or that
he is doing what is either wrong or contrary to law". This section refers to
acts done by a person of unsound mind. There are four kinds of person who
may be said to have a n unsound mind. These include;
1. Idiot
2. Lunatic or mad
3. Person of unsound mind due to illness
4. Peraon who ia drunk: Though a person may temporarily lose his mental
faculties after taking alcohol a n d may commit crime in a state when his
mental faculties a r e impaired, h e is usually denied the benefit of Section 84.
The maxim followed is "Oui pecat ebrius luat sobrius" (Let him who sins
when d r u n k be punished when sober). When a sober m a n chooses to drink
and loses control of mental faculties, he cannot be allowed to plead
unsoundness of mind to get benefit of Section 84. However, a clear exception
is the case of a person who is a chronic alcoholic a n d alcoholism h a s caused
such degree of brain damage as to result in insanity. Delirium tremens,
found in some chronic alcoholics is also covered under this. Drunkenness is
no excuse, b u t delirium tremens caused by drinking a n d differing from
drunkenness, if it produces such a degree of madness, even for a time, a s to
render a person incapable of distinguishing right from wrong, relieves him
from criminal responsibility (Davis 1881 cited in Gupta 2002:42). If habitual
drunkenness h a s created f i e d insanity, whether pcrmanent or intermittent,
it is the same as if insanity had been produced by any other causc and the
act is excused (Bheleka 1902 cited in Gupta 2002:42). Alcoholism may
constitute a disease [for the purpose of this section) provided it has damaged
the brain to such a n extent a s to grossly impair the ability to make rational
judgments and emotional responses. A killing attributable to the taking of
alcohol is quite different from alcoholism a s discussed above and a line must
be drawn between the two, though it may be a fine one in some cases (Tandy
1989 cited in Gupta 2002:42). From the presentation of the provisions and
the discussion that follows it is clear that the law draws a clear distinction
bctween drunkenness resulting in transition inability to control emotion and
alcoholism causing brain damage resulting in intermittent (Gupta 2002:42).
According to Basdev (1956 cited in Gupta 2002:42), the rule is that insanity,
whether produced by drunkenness or otherwise, is a defence to the crime
charged.


      In Karnataka the government h a s decided to apply strictly the Goonda
Act, 1985 to prevent illegal manufacture, distribution and sale of liquor in
the State. The preparation and sale of illicit liquor and manufacture and sale
of spirits and lndian Made Forcign Liquor (IMFL) are strictly restricted
activities under the Act. Those found guilty thrcc times will be exiled from the
region in addition to payment of fine. The government specificd that officers
not following the rules according to the State Excise Act of 1965 for
monitoring and preventing illegal operations will be liable for strict action.
For any catastrophic events the area inspectors and officers are to be held
responsible. The dccision was taken by the Karnataka government in the
wake of the tragic event of Nelamangala (in Bangalore Rural District) that
took away more than 20 lives due to consumption of spurious liquor on the
eve of Ugadi festival in April 2005. The disgusting fact is that the local
retailers sold along with the legal product the spurious arrack in the sachets
stamped with the government emblem.           Manufacture of illicit arrack a n d
distillation of fake IMFL is reported to be a big business in Bangalore rural
(Hindu 13th April, 2005 p.4) a n d in Hubli (Kamaripet) urban areas. Illicit
arrack is also prepared in large quantities in the districts of Bijapur (thandas
of   Basavanbagewadi) rural,       Bagalkot   (Machakandi thanda), Belgaum
(thandas of Kakati taluk) (as stated by the Excise Minister in a meeting of
Excise Officers held a t District Commissioner's (DC) office, Dharwad            -

reported in Vijay Karnataka 17'" September, 2005 p.11) a n d in majority of
the thandas of Kalghatagi a n d Hubli taluks in Dharwad rural (as observed by
the researcher). A s reported by the Excise Minister the legal sale of arrack
was on a n average around 88% of total sale in August 2005.


     In Karnataka the manufacture, sale a n d distribution is governed by the
following main Acts a n d Rules;
     1. The Karnataka Excise Act, 1965
     2. The Karnataka Prohibition Act, 1967
     3 . The Karnataka Prevention of Dangerous Activities of Bootleggers, Drug
        Offenders, Gamblers, Goondas, Immoral Traffic Offenders a n d Slum
        Grabbers (Conditions of Detention of Detenus) Order, 1985
     4. Narcotic Drugs a n d Psychotropic Substances (Karnataka ) Rules, 1985
     5. The Karnataka Excise Services (Recruitment) Rules, 1966


                      n
5 2 Alcohol Industry i India
 .
        The first distillery in the organized sector was set u p a t Kanpur in 1805
by Carew & Co. Ltd. for manufacture of rum for the army (www.aidaindia.org
19.03.2005). The technique of fermentation, distillation a n d blending of
alcoholic beverage was adopted from Europe or developed on similar lines.
             The brewery industry is still under the licensing policy of the central
       government. In addition companies have to get the approval or ratification
       from state governments for establishing their units in the states. The
       industry    is subject to licensing under Industria1 (Development and
       Regulation) Act, 1956. There is a limit (cap) on licensed capacity and special
       license is required to expand the production. The brewery industry is capital
       intensive. Molasses and barley are the main raw materials. The supply of
       molasses, which was under regulation h a s been decontrolled in some states,
       but is under some control in Karnataka. Unfair practices are rampant under
       the license system as only few get the license. Few distributors bid for more
       number of shops and for more number of blocks to have wider coverage and
       control over the market.


             The features of alcohol industry as presented by the Annual Survey of
       Industries for the Year 2001-02 are given in Table -5.1.


       Table-5.1: Characteristics of Indian Alcohol Industry- 2001-02
                                       3
                                      0 No            of Fixed          Working          Total        Income Profit
                              Existing        Operating Capital         Cap              Output       ( . in ( . in
                                                                                                       R.     R.
                              Factories                   R.
                                              Factories ( . in          ital (&.in       (&.in        Lab)   Lakhs)
                                                         Lakhs)         Lakhs)           Lakhs)                    -
         Dlst~llery
I
         Blendlng                               239        133804        61540           391902       58936        35552
-
I                              --
                                                                                                                   7
         Manufacture
         of Wines         1      58       1      57    128172       (    26846       11115031 20243 ( 1 3 6 9 6




I        liquors      &                   1     105    1   112341         27010      1   202238   1   2901 1   /   13760

                                      I_               I            I                I            I            I
                                      Survey of Industries, Vol. I, Dept. of Statistics & Rogramme
    Implementation, GO1 Kolkata -
      Karnataka, Maharashtra, Tamil Nadu, and Harayana are the major
States producing alcohol. The total number of operating factories is 401 in
the country with a total value of output worth Rs. 7,056.43 crores. Total
income amounted to Rs.1,081.90 crores in 2001-02 with a total profit of Rs.
630.14 crores to the industry.


      United breweries, Skol breweries a n d Mysore breweries are leaders in
marketing of beer. Mcdowell & Co., Herbertsons, Shaw Wallace distilleries,
Mohan Meakin a n d Jagatjit Industries hold a major share in wine, spirits
and liquor market. DCM Shriram Industries, Kesar enterprises, Simbholi
Sugar Mills a n d IFB Agro Industries are leaders in industrial alcohol market.
Reforms initiated in 1991 have facilitated joint ventures with international
companies to manufacture international brands. Foster's a n d South African
Breweries (SAB), International Distilleries India (IDI), United Distilleries a n d
Vintners (UDV) and many more foreign companies have entered the Indian
market. Foreign liquor is available in the Indian market a t authorized liquor
shops, clubs, bars, restaurants and hotels.


      A brief sketch of the major industries compiled from the report of
Centre for Monitoring Indian Economy (CMIE) (2005) for sample companies is
presented in Table 5.2. The report covers around 60% of total industries,
which account for more than 90% of liquor market (beer-47 companies; wine,
spirit a n d liquor-1 1 8 companies; Industrial alcohol- 7 5 companies).
                      Table-5.2: Indian Alcohol Economy- 2003-04
                                               -
       SI. Particulars                             Beer     Wine,     1ndGtrial
       No.                                                  Spirits & Aicohol
                                                            Liquor-  -
       I.   Exports      I . Quantity('000)        9420.2   I3274 kl  7470.1
      -               -  Z.Value(Rs. crores)         26.3      73.2      13.6
        2.    Imports    1. Quantity('000)          755.8    4011kl    7390.2
              - -
                         2. Value(Rs, crorcs          2.5      65.1
                                                               -      -     9.9
      --sales
       4.
                   Value - - (&ores)
                                -
              Market size (crorcs)
                                               1 1601.6
                                                 1604.1
                                                             5392.4
                                                             5457.5
                                                                          1224.0
                                                                          1233.9
        5.    Domestic ~oGu@n (crores)-
                         --          ~    -        1577.7                 1220.3

       ki: kiio litre
       Source: CMIE (2005), Industry, Market Size & Shares,
       CMIE, Mumbai .54-59.

      The key statistics provided by CMIE (2005) reveal that domestic
consumption of beer in India h a s increased from 11 14.7 thousand litres in
1998-99(as recorded from CMIE, 2005b) to 1577.7 thousand litrcs in 2003-
04 i.e. a n increase of around 42% during 6 - 7 years! During the same pcriod
exports of beer h a s also increased from 5562 thousand litres to 9420.2
thousand litres. The dependence on foreign beer h a s declined a s shown by
reduction in the quantity of imports to 755.8 litres in 2003-04 from 1059.7
litres in 1998-99. In India the craze for beer is on the rise a n d it is being
depicted a s a healthy drink. This h a s been possible because of increased
participation of foreign companies in Indian alcohol market through
individual venture or merger with existing companies facilitated by flexibIe
Foreign Direct Investment (FDI) rules a n d liberalization policies. However,
our exports and imports of beer and alcohol as percentage to sales were
0.76% a n d 1%only during 2003-04 (CMIE 2005b).


      CMIE statistics on corporate sector for the year 2003-04 (not produced
herc) indicate that advertisement expenses of alcohol industry account for
17.6% of total costs, while wages and salaries account for 11'X of total costs.
Raw material expenses account for 54% of total cost. External sources of
fund account for 117.9% of total sources.


      In India nearly, 52% of the alcohol that is produced is being utilized for
the production of potable alcoholic beverages a n d the rest for industrial
purposes    (www.aidaindia.org 2005). Establishment         of    distilleries were
promoted in early 1940s to facilitate the u s e of molasses, which was
generated in large quantity in sugar mills of Uttar Pradesh a n d Maharashtra.
A Joint Committee of Uttar Pradesh and Bihar set u p during this period
recommended the establishment of distilleries for producing alcohol mainly
for industrial purposes (Use of alcohol for production of chemicals, drugs,
plastics,   etc.,   by   industries)   and   as   alternative    to   motor    spirit
(www.aidaindia.org; 19.3.2005).        The central a n d state governments are
promoting use/supply of ethanol blended            petrol/diesel to prevent air
pollution a n d meet the shortage of petrol/diesel in the country. The media
reports suggest t h a t the use of alcohol in the manufacture of gasohol alcohol,
solvents, alcohol based chemicals, dye stuff, synthetic rubber, polymers and
plastics, etc., increased in the initial years d u e to setting u p of distillery
plants. But, later the decontrol of molasses in 1993 h a s affected the supply
of molasses to the production of industrial alcohol.


5.3 Composition of Alcohol Industry:
The Industry is comprised of four categories;

(i) Country Liquor
       Country liquor is the largest component of alcoholic beverage industry
in   India. The     production   is around    150 million       cases per     annum
                            12.1
(www.sin~[net.comindiapro.html 1.01). It is unbranded a n d a highly
potent alcohol drink (the strength is around 40% alcohol by volume).
I.     Licensed Country Liquor - It is commonly known a s arrack and is
produced by distillation in distilleries. Country liquor or arrack is generally
made from locally available cheap raw materials s u c h a s sugarcane, rice,
coconuts. It is distilled from sugarcane molasses a n d jaggery. Molasses is
diluted with water. Arrack is distributed through licensed dealers who get the
contract from the state government excise department. The arrack is sold in
sachets in licensed outlets a t the block level in Karnataka.     It is a main
source of alcohol revenue to State governments.


11.     Illicitly Made Country Liquor   -   It is produced without license from
government a t individual, household and community level. Illicit brewing of
liquor takes place in unorganized sector. It is a crude form of alcoholic
beverage a n d poor people consume it because of its low cost a n d high kick
feeling. Consumption of illicit liquor h a s led to reporting of serious health
consequences and deaths several times in Karnataka, Andhra Pradesh and
Tamil Nadu. Due to contamination of liquor a n d increase in the quantity of
methyl alcohol (Task Force on Health, Government of Karnataka) liquor
becomes poisonous (Gok 200 1;152).

(ii)     Indian Manufactured Foreign Liquor (IMFL)
         IMFL includes liquor produced, manufactured or compounded in India
in the same manner as gin, brandy, whisky or r u m imported into India and
includes 'milk punch' (a hot or cold drink made by mixing water, fruit juice,
spices, a n d usually wine or another alcoholic drink) a n d other liquor. The
size of organized liquor industry includes around 4 0 breweries and 2 5 IMFL
manufacturing units. The IMFL industry with a size of around 50-80 million
cases (each case with 12 bottles containing 750 ml of liquor in each bottle)
produces Extra Neutral Alcohol (ENA) products a n d Rectified Spirits (RS)
based     products   (www.dotexplaza.com, 2001). Rectified      spirit is plain
undenatured alcohol of strength of not less than 520 over proof' and includes
absolute alcohol. ENA based products are of better quality and supposed to
have longer shelf life a n d are produced by large companies. RS products are
price sensitive a n d are produced by large number of small enterprises. Spirit
is a mixture of ethyl alcohol and water.


        IMFL production was 5,16,600 Hecta Litres (HL) in 1998-99. Liquor is
packed in 180, 375, 500, 750 and 1000 ml bottles (wu?v.valuenotes.com
1999).


Brown Spirits: In India preference is for brown spirits (molasses flavour)
such as Whisky, Brandy, and Rum. Whisky accounts for 60.70% of the
market size. Molasses is heavy, dark coloured residual syrup drained away in
the final stage of the manufacture of jaggery or sugar, which can be
fermented. Hayward's whisky, Directors special, Bagpiper, Gilbey's Green
Label, Peter Scot, Smirnoff, Passport a n d Black Dog a r e the major brands of
whisky. Doctors Brandy and Mc Dowel1 Green are 'popular brands of brandy.
Khoday's Rum, Becardi and Old Monk (xxx)are brands of r u m


White Spirits: White spirits are made from the malt of grains and are
popular in western countries. Gin a n d Vodka are products of white spirit.
Smirnoff is leading world brand of vodka.


(iii)   Beer
        To manufacture beer, the malt extract from barley, maize flakes a n d
sugar are boiled with hops for a n hour or two to extract bitterness and aroma
a n d this extract is called as wort. When the wort is cold, yeast is injected to it
and is allowed to ferment at a controlled temperature a n d the beer is chilled


                                                                                                                     I
'I
       spirit is a mixture contalnlng a standard amount of ethanol. A bottle of whisky of 70Uisi n fact 70n/u of a
  P~.oof
standard of that whisky.
and transferred to lager vessels a n d stored a t 1 degree centigrade. The
matured beer is then filtered, bottled, pasteurized and packed.


         The annual size of beer market is around 70 million cases a n d is
expected to grow a t 10-12% per a n n u m with around 40 units operating in
the organized sector (www.indianmarkets.com 2001). Maharashtra (Mumbai),
Karnataka (Bangalore) a n d Tamil Nadu (Chennai) are the major beer
consuming states accounting for about 7S0h of the beer market. There are
around 40 units for beer manufacturing in the country. License is required
for manufacturing beer except for those employing less than 50 persons or
manufacturing without the use of power (www.dotexplaza.com 2001).


         The installed capacity for beer was 6,750,000 hecta litres in 1997-98
a n d the production was 4,352,570 hecta litres in 1998-99.


         Popular Brands of beer are Haywards 2000 a n d 5000, King Fisher,
Kalyani Black Label, Golden Eagle, and London Pilsner. Stroh's a n d Fosters
are foreign brands.

(iv) Toddy
         Toddy is obtained by fermenting the s a p from an excise tree2/various
 species of palms, especially palmyra a n d coconut. The production of toddy is
a restricted activity a n d requires permission. Toddy generally contains less
 than 5% alcohol. In Karnataka a n d Andhra Pradesh the liquid collected from
 the coconut trees is named a s 'Neera'. Toddy is extracted in a limited
 quantity in Mangalore, Udupi and Chitradurga districts in Karnataka4.
 Revenue is collected per tree i.e. on each tree marked by the department.



                                                                                                                    '
I'Excisc tree refers to the gulmohwa, coconut, palm, palmyra. dale, bagani or dodasal trce or any other tree, the
 fermented or unfermented juice o f which contains alcoliol and frorn which toddy or any uther liquor can be
 prepared (Puliani 2005: 15).
       In India alcoholic beverages are produced mainly from sugarcane
molasses, while in western countries they are largely produced from malt
derived from grains [barley, rice..] and from fruits [grapes, apple....].In one of
the Indian states [Goa] alcohol drink known as Fenny is prepared from
cashew fruit. Foreign companies establishing their distillery units in India
are required to produce alcoholic beverage from grains so a s to reduce
competition for molasses used by domestic distilleries. Molasses a bye-
product of the sugar industry is dark brown in colour. It is acidic in nature,
rich in salt and contains sugar that cannot be crystallized. The molasses is
diluted with water into a solution containing 15-16% of sugar. The solution is
injected with yeast and the liquid is left for fermentation a t room
temperature. Further it is distilled in a number of distillation columns to get
the required strength and quality of alcohol. This alcohol is either diluted to
get the desired type of country alcohol or is left for maturation and later
blended with malt for manufacture of whisky and other IMFL.


5.4 Alcohol Market
      Maharashtra, J a m m u & Kashmir, Goa, West Bengal, Meghalaya,
Tripura, Arunachal Pradesh and Assam have open markets for liquor sale.
Uttar Pradesh, Rajasthan, Madhaya Pradesh, Bihar, Punjab, Orissa and
Chandigarh follow auction market. Under the auction system floor price is
fixed for the shops and the bidders have to quote prices. Those who quote
highest price would get the license and bid price is to be paid in equated
monthly installments.


      Market survey reports indicate that alcoholic industry is expected to
grow a t 12% p.a. (w.
                    1ndiamarket.com 2001).


       South India is the major market for liquor and consumption of liquor is
reported to be high in Andhra Pradesh.        In Tamil Nadu, Kerala, Andhara
Pradesh and Delhi liquor market is controlled by state government. In these
states the distribution of liquor is done through State agencies.          Gujarat,
Manipur, Mizoram a n d Nagaland are dry states implementing prohibition in
the state. In Karnataka while IMFL is sold in open market in licensed shops,
country   liquor   i.e.    arrack is   sold through    auction    system through
contractors. And, liquor is available in some departmental stores in the
capital city (Bangalore).


      The Indian market is supposed to be inclined towards whisky, which
accounts for about 60% of the IMFL market followed by spirits like r u m a n d
vodka, hence attracting the MNCs to India (The Hindu, www.hinduonnet.com
         But, there are also indications that there is slow increase in the
12.11.01).
demand for beer. There is a demand from All India Brewers' Association
(AIBA) to consider beer a s a beverage a n d de-link it from hard liquor and
lMFL as it h a s nutritive value a n d health benefits. Further there is demand
to make its distribution open.         Madhya Pradesh h a s liberalized beer sale
while Uttar Pradesh h a s liberalized beer industry. In Andhra Pradesh
additional    beer        bar   and    outlet   licenses   have     been     issued
(-www.rediff.com,l2.11.01).


      The IMFL a n d beer sector is dominated by few large countries with
wide spread    production       units and nationwide marketing net works.
Availability of raw materials i.e. molasses, increasing price of barley,
bootlegging a n d moonshining, multiple taxes, c a p over production are the
main problems encountered by producers a n d traders particularly small
players in production a n d sale of alcohol beverages.
              Fig-5.1: An Overview of the Indian Alcohol Market




                                                                             Laaer
Brown         White

                         E lI t-=
                           Licensed      illicit


                                                                             Stout


                              D                                              Diet




                                                                         I=  Strong




        In Karnataka distribution and marketing of liquor h a s been regularized
just a s the practice of government controlled system in Tamil Nadu, Kerala,
Andhra Pradesh a n d Delhi. Now each distiller h a s to send the liquor to the
Karnataka State Breweries Corporation Ltd. (KSBCL), which is the sole
distributor in the state. From here the liquor is released for wholesale and
retail trade. Earlier wholesaler use to fetch the liquor directly from the
distillery.


        There is 1-10 limit for sale of arrack in the state. Contractors have to pay
the rentals ancl distillers have to pay a duty of Rs. 2 bulk litre. Rentals are
monthly payments for each block, which are fixed in the auction for getting
contract of arrack sale. Government fixes the rental based on the previous
year's rental at: 5% increase. Those who bid above the specified rental with
highest quoting will get the contract.
5.5 Alcohol Consumption: Indian Scenario
      In 1991 Andhra Pradesh occupied the first rank in the country in
arrack consumption with 11 1 million litres per a n n u m excluding another 60
million litres of IMFL and beer consumption. Reddy e t a1 (1999:276) discuss
the role of Andhra        Pradesh   state government in increasing alcohol
consumption in the state. According to them             the reasons were; (i)
disappearance of social stigma associated with alcoholism a s the government
itself facilitated easy marketing or sale of arrack (ii) introduction of cheap
liquor by government (iii) introduction of contract system and (iv) marketing
of arrack in sachets.


      NSS   55th   round results (Table- A-5.1) reveal that in India the monthly
per capita expenditure (mpce) on intoxicants is Rs. 3.88 in rural areas and
Rs. 4.83 in urban areas. But, a s a percentage to total mpce the share of
mpce on intoxicants is higher in rural areas (Rural-0.90% Urban-0.56%).
Average mpce on intoxicants in the country is highest in Arunachal Pradesh
both in rural (Rs. 41.58) and urban (Rs. 28.51) areas. Sikkim and Goa are
the other two states with high mpce on intoxicants. Andhra Pradesh, where
consumption of alcohoI is reported to be higher, h a s a n average mpce per
person of Rs. 7.81 and Rs. 5.03 respectively in rural and urban areas. Other
states spend less than Rs.10 monthly on intoxicants. Consumption of
intoxicants is also higher in Union Territories (UTs) of Chandigarh, Dadra &
Nagar Haveli, Daman & Diu, Delhi and A&N Islands. A s the general belief
goes and as also the studies indicate tobacco consumption to be more among
alcohol users vise- a- versa. But, N S S results reveal that high mpce on
intoxicants does not coincide with high mpce on tobacco. MPCE on tobacco
is higher in north eastern states of Mizoram, Tripura, Meghalaya, Nagaland,
Himachal Pradesh and in J & K and UT of Lakshadweep and in Rajasthan
(Rural). In Tripura, the mpce is less than Rs. 2 for intoxicants while it is more
than Rs. 10 for tobacco.
          Totally, rnpce on intoxicants accounts for less t h a n 1% of total mpce
both in rural a n d u r b a n areas in the country. In Arunachal Pradesh it
accounts for 6.42% and 3.74% of the total mpce in rural a n d urban areas
respectively. A.mong other states, Gujarat, which is a dry state, h a s lowest
mpce around F!s. 1. The NSS results indicate that the value of monthly per
capita consumption on intoxicants h a s increased with increase in mpce
class.


          We present below (Table 5.3) the overall s t a t u s of the alcohol in the
country, which. is culled out from the WHO country profiles on alcohol
compiled for the year 2002. Most of the components in the Table are self-
explanatory. The beer: cola ratio indicates t h a t the price difference between
light alcoholic drinks and soft drinks is not very high. Hence, a n inducement
for the young to easily shift to light drinks.


Table 5.3: Alcohol Profile of India XBMay, 2002



                                                                                   1 . 5 5 [ R s . 80.001
              ii)      average spirit(750 ml)                                      2 . 4 8 [Rs. 126.481

                                                               --




5.      I Relative price3"                                                    I,                                      1




' The data is representative mainly of south India
    Beer: cola ratio is the number of soft drinks that one can get for the price ofone bccr derived by dividing the
    price of a beer in local currency with the price of a soft drink (of same quantity) [WHO Global Status Report:
    Alcohol Policy 20041
'   All prices are standartlized to the per eapita gross domestic product in local currencies to get the relativc
     costs of alcoholic beveragc in each country. Relative price here indicates the ratio of the price of alcoholic
     beveragc to the prlce of GDP per capita and how cheap or costly is the beverage[ price in local currcncyl GDP
     per capita in local currency] [WllO Global Status Report: Alcobol Policy 2004)
                                                --
                          License for off premise
        production of alcoholic beverage [Hours, days and
         lace of salt: and density of outlets]
                            restrictions a n d level of
        Kestrictions on sponsorship of sports




k~
        events
                       excise stamp
               random breath testin
        Use of --
   .-   A e limit for purchase of alcztylic beverage
        Tax as % of I-ctail Orice
                     beer




                                                               cenlres, education buildings,
                                                               work places and parks and
-                                                            I streets
     -~
 * as ner 2002 rate
           ~   -   -   ---   ~

Source: WHO (20041, Global Status Report: Alcohol Policy, Depaxtment of Mental
Health Ik Substance Abuse, WHO,Geneva [available at
-                            -.



   Table 5.4: State-wise Patterns of Alcohol Consumption in Rural India, by Gender
                                 and Age-Categoryf/o)




                   -
                   -




        n or equal to 15 years in age Mahal's (2000)estimates based on NCAER survey
      The following observations emerge from the data that is available in
Tables-5.4 presented above and Table 5.5 that follows
      o       The rate of reporting for men is higher than reporting for women
              in all the states.
      o       2.1% of the women have reported frcquent consumption of
              alcohol
      o       Frequent consumption of alcohol is higher in the age group 20s-
              30s.
         o    Inspite of prohibition, Gujarat shows frequent consumption of
              alcohol, but lower than for other states
      o       A s shown in Table-5.5, only in Andhra Pradesh the proportion of
              Muslims consuming alcohol is higher. All India average shows
              3.5% for Muslims, 24% for tribals, and 8% for literatres.

Table5.5: Alcohol consumption by socio-economic and demographic characteristics,
                                  by state %I
     State         Proportion Proportion of Proportion
                                Muslims
                   Consuming Consuming15+
                   Population                                             with Female
-                     15+
Andhra
-        Pradesh      11.8        13.2      - 11.5            9.4             8.8
Bihar              2 3 -          6.1           44.8          15.6            19.7
Gularat               3.9          1.O       -. -9.9
                                                  -           2.6             3.5
Haryana               8.3         6.4           4.8           10.1   -        3.6
Himachal
P_raclesh              16.7             8.2        16.8       17.5            4.1
Karnataka              3.3      2   3     -   ~-   6.2        3.0             2.6
Kerala                 7.5              1.8        3.2    .
                                                          -   6.9             5.1
Madhya Pradesh     -   12.1             6.7        22.9       12.1       -.   8.3    -
Maharashtra                                        13.8       5.3             1.9
                                                              5.1             9.6
                                                              19.4            10.0
                                                                              0.6
                                                                              2.3
                                                                              2.9
                                                                              12.2

                       15.7                        36.8       19.6            5.6
                                                                              --
                       8.9              3.5        23.7       8.4             5.8

              k
F : ~ a h (2000) "whatworks in Alcohol Policy? Evldence from Rural India'.
Economic and Political Weekly, 3345):3964
--         -      -
        In India the minimum legal age limit for purchase of alcohol varies
between 18 to 21. In Karnataka Excise Licenses (General Conditions) Rules,
1967 specifies t h a t liquor should not be sold to adults below age 21. There
are other guidelines that liquor should be sold only on cash and the closing
timings for shops a s 10.00 PM a n d for p u b s l b a r s as 11.30 PM.   But, seldom
the retailers follow the specification of age limit. Our IIH survcy results
presented in Chapter VII reveal that all the drinkers who initiated their first
drink before the age of 1 8 have become addicts.


5.6 Alcohol Advertising
        Liquor advertising is banned o n television a n d other media. Alcohol
industry also states to have imposed self regulation o n liquor advertising.
The Confederation of Indian Alcoholic Beverages Companies (CIABC) h a s
brought out self-imposed code of conduct for advertising alcoholic beverages
(culled out from Sunday 23-29 August, New Delhi. 1998:34-35) a s follows;


    J                                                    a
        Advertisements should not be targeted spec~fically t minors or featurc
        models who are minors
    J   Advertisements should not imply that alcohol is necessary for sexual
        success. Or t h a t they enhance either mental abllity or physical
        performance.
    J   Advertisements should not be for promotional items, accessories or
        services, using brand names of alcohol, they should not feature
        bottles, copy matter directly suggesting alcoholic drlnks or drinking
        vessels filled with liquor. Nor should they show people drinking such
        products.
    J   Advertisements to be allowed to telecast only from 9 PM till dawn.
    J   Brand flashes are permitted without any time restriction.


        But, we find that companies have shifted to surrogate advertising i.e.
highlighting brand name through advertisement for sale of soda, mineral
water, lemonades, mail order booking, etc., with same brand name.
Kingfisher, Bagpiper a n d Gilbeys Green Label soda, Knock-out are some of
the brands advertised. Advertisements for example the Hayward's soda
advertisement in television channels depict the message that it h a s power to
create a tumble a n d young womcn are shown a s knocked down due to its
force. Advertisement on Knock-out depicts the macho power of man a s
resemblance to the soda drink. In many magazines advertisements on major
brands do not mention them as either water/soda or liquor. Even if
specification is made, the word soda i s invisible at first sight a s it appears in
a corner in small fonts. There may be many such           advertisements, which
directly publish or show only the brand names. Moreover, the companies
release their n'ew brands with much of fan fare and by cclcbrities and
naturally there is publicity by the new papers a n d magazines about the
event. Hotels, bars and shop display huge boards on drinks. All              these
increase awareness on alcohol drinks a n d the attraction towards it,
particularly for the young.


5.7 Alcohol Taxation and Revenue
      Alcohol is a State subject, hence there exist wide variations between
the states on the levy of taxes, regulatory measures, etc. In addition to
license fees, import/export pass duties alcoholic beverages attract sales tax
(ad valorem), bottling fee, excise duties, privilege fee, gallonage fee, litre fee,
special fee on imported beverages and vendors fee. The duties and taxes
from bottling to sales vary from state to state. Hence, to avoid multiple taxes
industries establish bottling units in states where sales (high demand) are
higher.


      Duties a n d taxes account for 40% of the beer cost in India, while it is
around 20% in US, France a n d Germany (yww.indiadiets.com, 2001). To
prevent dumping of cheap irnportcd varieties the Central government has
imposed price based tariff on imported beverages.
     Direct    c.ollections    of   excise   and      sales    tax   from     alcohol    are
approximately around US$ 5 billion per year (www.sochara.org 2005) i.e
around Rs. 25000 crores (appx). In Karnataka excise revenue constitutes
17.46% of the state's total revenue and ranks a s the fourth largest in the
country (Puliani, 2005). A s per the Industrial Policy of the Government of
Karnataka     khandasari      units,   breweries      and     distilleries,   units   using
molasses/rectilied   spiritldenatured        spirit    as     main    raw     material   for
manufacturing of potable alcohol are not eligible for any incentives and
concessions (Annexure -111 to G.O.No.CI 30 SPC 9 6 Dtd.15.3.1996 and
3 1.5.1996)froni the government.


      However, in 2000-01, Karnataka Government announced a scheme
called 'Kara- Siamadhana' in order to recover the excise arrears. A provision
has been made by amendment to the Karnataka Excise Licenses (General
conditions) Rules, 1967 in the year 2000 (new rulel5A) to waive the interest
amount, provic-led a defaulter who owes dues to the Government comes
forward to pay the principal amount. Under this provision crores of rupees
would be waived off, if contractors clear the principal amount.


      The rates of excise duties and fees and Additional Excise Duties (AED)
as on 1.4.2005 are given in Table- 5.6.
                  Table 5.6 Rates of Excise Duty, Fee & AED as on 01-04-2005
--.
  .
  .                                 Per Bulk Litre in Rupees)
                                                                 Export
       Name of the                      In~port Export Duty       duty    Additional Excise
 S1'No
       Liquor                within       Fee    (other states) (Outside        Duty
                    .-       State                 -.            India)
   1 .-Arrack                 2.00                      -           .
                                                                              -
       IML-Civi I
       i) < 400              40.00                                               45
                                         10.00        3.50        0.40         65,75
       ii) < 450. <650       55.00
                                                                              90. 140
--     <I200 & >I200                                              -           -
   3   IML Defence           45.00       10.00 . -    1.50
   4   Fenny                 45.00                    0.35




                                                                                                                  -
     5      Beer                                      6.00            1 .OO
-
-
                                       4.00
                                                                    0.1 5
                                                                  (upto 65"                     upto Rs. 1200-          18
            Wine:-Not
     6      exceeding 24'%             4.00          10.00                                      upto Rs. 2500           48
                                                                     0.10
            V/Valcohol
                                                                  (abovc 65'                    above Rs. 300 @ 70
                                                                     U.P)

            i) Own use or.
      7     sale to others
            ii) Re-
                                       6.00
                                       3.00
                                                      4.00    1       3.00            1 .OO

.-
            distillation
            i) Denatured
            Spirit                     2.50                           2.50
            ii) For mixing             2.00
            with petrol
            Imported                                66% or 130lB.L, 25% for >
                                                    120O/cs           66% or                              Litre.fee
            Liquors a)                   .
                                        ..
                                                                                                            5.85
                                                                                                            1 .00
                                                    66%)or 200lB.L, 33% for >
                                                                                                            1.45

~-
.-  Source: The Karnatalta Excise (Excise Duties and Fees) Rules, 1968, State Excise Office, Dhanvad

               T h e K a r n a t a k a g o v e r n m e n t levies, wholesale license fees ( r a n g i n g from
      Rs. 7 . 2 5 , 0 0 0 per y e a r i n m u n i c i p a l C o r p o r a t i o n area to Rs. 5 , 7 5 , 0 0 0 in o t h e r
      areas), retail license fees (varying f r o m R s . 2 , 2 3 , 0 0 to R s . 1 , 0 0 , 0 0 0 ) , license
      fees t o c l u b s , 'litre fee' (varying f r o m R s . 4 . 4 0 per b u l k litre of spirits, liquors,
       s p a r k i n g w i n e s c o n t a i n i n g 4 2 % a n d over of proof s p i r i t t o Rs. 0.75 per b u l k
litre of country beer, cider and all other fermented liquors and many more
fees.


         The Karnataka Excise Minister recently (ETV a n d Chandana Karnataka
Tele News, 23.53.2005) stated that the government is expecting a total excise
revenue of Rs. :3025 crores from liquor sale in 2005. This he said will be from
a n increase of around Rs. 400 crores a s compared to previous year, which
would be due to raids on illegal manufacture a n d sale of lMFL, country liquor
a n d illicit liquor intensified in the State after tragic events of spurious liquor
consumption. In Hubli taluk in Dhanvad district the excise collections from
arrack sale have shown significant increase amounting to more than 80% of
total sale of liquor. Per month rental this year (2005) h a s increased to around
Rs. 4 5 lakhs a s compared to last year's rental of Rs. 2 5 lakhs6. The excise
staff feels that the increase in excise amount is due to increased sale of legal
arrack resulting from restriction of 'moonshining' a n d 'bootlegging' activities.

           Table-5.7 Number of Arrack Shops/Bars and Revenue from Alcohol in
                                    Karnataka


                                hotels, clubs)       (RE.in       tax revenue of
                                                     crores)         the state
                     12000          8235            1550.23            13.35
       200 1-02      12935          7698 -          2004.11            16.06
       2002-03       12880          8068            2118.58            15.59
       2003-04       13368          7937            2365.00            17.46*

     Source: o m c e of the Excise Commissioner, Government of Karnataka,
     Bangalore

         Table 5.7 presents the number of arrack shops and other shops, which
    have received 1:icense from the government. The number of arrack shops h a s
    increased by 11% during four years, whereas there is reduction in the

I   " As revealed during personal discussion with State Excise Department
                                                                                       I
    (Dhanvad) personnel.
number of other licenses issued for sale of liquor. Alcohol revenue plays a
major role in state's revenue. The share of excise revenue is likely to increase
still further due to prevention of illegal manufacture and sale of liquor and
arrack that has been intensified in the state. Government has announced to
set u p arrack shop for every 1000 population. This is likely to have serious
effects on the families, but definitely would increase government revenue.


5.8 Alcohol consumption in Karnataka:
      The report of the Task Force on Health and Family Welfare states that
in Karnataka alcohol consumption is prevalent among one-third of the adult
male popu1atio:n. About 50% of the drinkers develop alcohol related problems
including deprivation of family income to a n extent of 15 to 40% wasted on
alcohol and as:jociation with risk factorssuch a s unsafe sex leading to STDs
and HIVIAIDS (GOK, 2001 : 153-56).


      The resu~ltsof NFHS-2 (National Family Health Survey) for the year
1998-99 indicate that 8.8% of the household members consume alcohol in
Karnataka (The details are given in appendix to this chapter- A-4.2). The
extent of consumption is higher in rural areas being 17.7% among males and
1.2% among women. Nearly 25% of the male aged members consume alcohol
while it is only among 2% of female aged members. The number of members
consuming alcohol is higher in the age group of 40-49 (the period when the
responsibilities of     the   members increase in         relation to higher
education of children, marriage of children, caring of parents and
emerging health problems of selJ) and among illiterates. Percentage of
those who drink is more among members with low standard of living (26.2%
males; 2.1°/0 females) and the percentage of drinking shows reduction with
increase in standard of living and educational level. NFHS-2 results reveal
that the above characteristics are applicable to tobacco consumption also.
But, the percentage of tobacco users (including chewers and smokers) is
higher than the percentage of alcohol consumers.
      The NSS 55th round results indicate that average mpce on intoxicants
in Karnataka is Rs. 5.98 in rural area and R s . 4.30 in urban area. Their
percentage share of intoxicants is 1% of total mpce in both the regions.
MPCE on tobacco is around Rs. 6 to R s . 7 in the state.


    Table-5.8 Alcohol production and consumption in Karnataka

                      I   Wpe      I     Production
                                                             I
                      1            1      (lakh BL)          1
                          Arrack       889.51   1   892.73   1




      Table 5.8 gives production of various types of alcohol in Karnataka in
1999-00 and 21000-01. Figure-5.2 and Table 5.9 reveal that though arrack
stands first in total quantity of consumption in Karnataka, its share has
been slowly declining over the years. While arrack consumption during 1999-
00 to 2003-04 h a s increased by 22"/0, consumption of liquor and beer has
increased by 197% and 67% respectively.


          Table 5.9 Consumption of alcohol ('000litres) in Karnataka




                   2002-03




      Karnataka, Bangalore             -                     ---    .
                                                                   .. ---   -
   Fig-5.2: Consumption of alcohol in Karnataka (1999-00-2003-04)
                              ~-      -                                      --


                                                                                               1
                                          ~                              ~




                    Consumption of Alcohol in Karnataka




                                                                                            Beer    I   ~
                 1999-00    2000-01               200102
                                                   years
                                                               2002-03

                                                                 ----
                                                                                  2003-04

                                                                                             -- -   1
     In Dharwad district also the consumption of liquor and beer has
increased   trernendously    i.e. by               231% and              60% respectively.                  Arrack
consumption has increased by only 14%.

                 Table 5.10 Consumption of Alcohol ('000

             r          litres) in Dharwad District
                    Years                     1
                                   Arrack Liquor Beer      I             I



                                              I
                      District Statistical Office (2003), District at a
                    (199-00 to 2003-041, Zilla Panchayat, Dhanvad
Fig-5.3: Consumption of alcohol in Dharwad district (1999-00 -2003-04)
           --




                                                                      I
                ppppp




                Consumption of Alcohol in Dharwad District (199940
                                    o
                                   T 200344)




5.9 Burden of alcoholism: Reflections from a ten year study by
  NIMHANS


       [Alcohol consumption in Karnataka during 1988 to 19991
 [Excerpts from the report of the Task Force on Health and Family Welfare
                                 (GOK 2001: 154)


     Per capita consumption of alcoholic beverages increased by 114%.
     Average consumption by a n average drinker h a s gone u p from 9 bottles
     of whisky per year to 20 bottles.
     Average age of drinking h a s dropped from 2 5 to 2 3 years
     More than 50% of the drinkers had problem drinking patterns and
     related health problems.
     The nuniber of heavy drinkers was more t h a n chronic alcoholics and
     they were into more social, economic and medical problems.
     The mean age of developing health problems h a s dropped from 35 to
     29 years,.
         Early alcohol related health problem was under recognized by primary
         health care physicians. Although a large proportion of patients were
         reporting potential alcohol related symptoms only 1.4% to 2.3% were
         asked for history of alcohol intake and none was advised to stop
         alcohol use.
         Alcoholism a n d its related problems are more in rural areas.
         Government alcohol related health expenditure and losses due to
         alcohol related industrial losses were estimated to be around Rs. 975
         crores, which was more than the excise earnings from alcohol
         beverage.
   [It is unfort.unate that more details of the study are not available. The
purpose of the above presentation is to highlight the extent of burden a s
revealed by a similar study by NIMHANS carried out in the other part of the
state]


5.10 Initiatives in Prohibition and Mass Awareness about Adverse
Consequences of Alcohol Consumption
         A look into the history of prohibition in India reveals that prohibition
h a s been a failure in the country. The reasons could be listed a s follows; (i) it
led to increase in corruption and violence (ii) emergence of black market (iii)
increased sale and consumption of spurious Iiquor.            After independence,
many states imposed prohibition may be considering the recommendation of
the Prohibition Enquiry Committee, 1958. But, Karnataka government h a s
not strongly favoured prohibition may be due to revenue considerations. It
was the first State (old Mysore State) in the south to relax prohibition in
1964, which was imposed in the state after independence (Reddy e t a1
1999:273) and later other States followed. Prohibition is still under operation
in Gujarat.
Orissa
      In Orissa, workshops, rallies, street plays and other forms of meetings
organized by tribal women with the help of NGOs to sensitize people on the
evils and hazards of country liquor. This p u t a pressure on the then
government to take appropriate measures in this regard. The Chief Minister
of Orissa state announced the ban on sale a n d manufacture of country liquor
on 18 April, 1994. The movement then is reported to have gained social
acceptance all over the state (www.hsd.ait.ac..2001).


      A lady village sarpanch in Pediapath village in Angul district of Orissa
h a s taught lessons to village women on how to control and prevent their
husbands from drinking. Those who drink a n d come home will get thrashing
with broomstick a n d later they are tied u p to a pole or tree in front of
community centre a n d then womenfolk splash water on their face. Women
conduct raid on illicit breweries and destroy 'ganja' fields and help excise
personnel in id,entifying moonshining activities a n d bootleggers.


Andhra Pradesh
      Andhra Pradesh introduced prohibition in 1995. Government imposed
the ban as public agitation against alcoholism strengthened during that time
when voices of women mostly poor a n d illiterate were supported by other
women associations, political parties and politicians, voluntary organizations,
extremist underground organizations a n d the press (Reddy e t a1 1999:271).
But, Andhra F'radesh government lifted prohibition in 1997 on the pretext of
failure to implement it.


Karnataka
         A people's movement in Dakshina Kannada District known a s "Jan
Jagruti Vedike" h a s brought in reduction in consumption of alcohol in 8 7
villages of Beltangadi taluk with its effort for around ten years. The
movement includes 8 1 village committees, 4 6 5 vigilance committees, more
than 3000 volunteers' groups a n d 30 women committees (Karmaveera,           8th

November, 1998 p.34). The activities include street play, film shows,
processions, conferences, meetings, home to home visit, interviews, mass
prayers, pamphlet distribution, campaign, etc. Dr. Virendra Heggade of
Dharmastala h a s motivated this movement.


      On J a n u a r y 11, 2004, women of Madihal village in Dharwad district
along with some youth forced the closure of all arrack shops in the village
a n d declared prohibition (Vattam, 2004:3). It is the joint effort of Self Help
Groups (SHGs) a n d Anna Hazare Bank Club. It is reported that women were
fed u p a s some sold even their wives' saris. The report also quotes of
Revadihal village in Hubli taluk, which h a s successfully implemented
prohibition in the village. People violating have to pay fines f i e d by village
elders a n d face. other punishment.


      There are many such reports on agitation against alcohol consumption
throughout the country. People have shown t h a t prohibition can be
implemented. But, we need to see in to the continuity of s u c h efforts and
their long term implications. According to Vysalu (1998:878), women
representatives of panchayats in Karnataka have favoured controls on liquor
rather t h a n prohibition may be on the basis of experiences of Andhra
Pradesh in implementing prohibition. The argument r u n s in terms of
increased and heavy taxation on alcoholic beverages a n d involvement of
panchayats in decision to control use of alcohol over time based on past
experience, rather than spreading a blanket prohibition in the state.
5.11 Major Observations
     The following conclusions can be drawn from the discussion on the
profile of alcohol economy in Karnataka and India


     Alcohol c:onsumption is increasing in India
     A s a resuIt of globalization and opening u p of the Indian economy,
      there is increase in the consumption of Indian Made Foreign Liquor
      and beer.
      Karnataka government gets more than 15% of tax revenue from alcohol
      taxes. Hence, the government is not interested in imposition of
      prohibition or restriction of alcohol consumption in the state.
     Though advertisements on alcohol in media are banned, companies
      adopt surrogate measures to highlight their brand names.
      Consumption of intoxicants is higher in the state of Arunachal Pradesh
      in India.
      In Karnataka per capita consumption per a n n u m is higher in
      Bangaloire (6.70 litres), Kodagu (6.56 litres), Dakshina Kannada (6.43
      litres), while Gadag (1.44 litres) and Chamrajnagar (1.48) have lower
      per capita a n n u a l consumption (for the year 2002-03). s
                                      Appendix A.S.Tables
            Table A-5.1 Monthly expenditure per person on tobacco and intoxicants in India




Source: NSSO (2001), Level and Pattern of Consumer Expenditure ip India- 1999-2000, NSS 55IhRound,
Report No. 457, Ministry of Statistics and Programme Implementatlon, Government of India, New Delh
                                                                                   o
        Table A-5.2: Percentage of usual household members age I S and above ~ h chew paan masala or tobacco, drink
                 alcohol and currently smoke by selected background characarlstlcs and sex, Karnataks, 1999
1        Background Characleristi~s      c h e w paan masala or tobacco       Drink alcohol       1        Currently smoke           1




    Residence
,Urban                       -           1             82
                                                       17 2
                                                                          1         14                              1
                            .-                                                      17 7 --



    lllitcralc




                                                                              -



    Medium                                                              -
                                                                    -
                                                                                                                  12.7
                                                        13.9            -
                                                                                    16.4    '                     26.0




    Urban                                               6.5




                                                               --
                                                        I 5                         0.0                           0.0




                                                                                     1 .o
                                                        14.4                         8.8                            13.2
    Nolc: Total includes 33 rnalcs and 26 rcrnalcs with mlsslng information on thc standard o r l i v ~ n g
                                                                                                          indcr, who arc not shown
    separately.
    Source: International Institute for Populstlon Sciences (2001), NFHS-2 (1998-99) Knrnataka, IlPS, Mumbal, Indla.
    ~-           Table A-5.3: District-wise alcohol sale and consumption of alcohol in Karnataka (2002-03)
                                      I.M.L.License issued 2002-03




1                      of        and                                  b                                 of
    Source: ~irectorat'e ~conomics statistics (2004), ~ a r n a t ' a at a Glance (2002-2003), ~overnment ~ a r n a t a k
          Table A-5.4: Number of arrack and licluor Shops in Dhanvad district (2001-02 & 2002-

                               No. of Arrack No of Liquor     Consumption of (in Lakh litres) 2001-02
          Dislricl




          Il>istr~ctTotal ( 331     331     170 170 1 3 . 5 6 1 2 . 5 2 10.81 5.65 ( 15.69 117,761
          Source: District Statistical Offlce (2003), District at a Glance (2001-02 and 2002-03),
          Zilla Panchayat, Dhanvad

                   Table A-5.5: Talukwise Consumption of Liquor in Dharwad District (Lakh litres)
                                                -          2000-0 1
                                                            -           -
                                                                                           200 1-02
~                                                 ArrArr- Liquor
     1)harwad                     2.19     3.54    4.5 1     2.32      3.78
                                  2.65     9.69    3.46       2.6
                                                                -   . 8.93
                                                                    ~           3.67      13.95 I                  9.95
                                           0.27     1.58     0.16      0.46     1.64       016                     0.4 1
                                  0.16     0.35    2.06      0.19      0.3 1    2.12       0.19                    0.81
                                  0.42     0.53     1.42     0.41 -
    Uistrict Total     13.18      5    a 14.38       1
                                                   13.03-    5.68

                      I
                                                                                          -                    contd    ...
                                                            2003-04 (Lakh L ~ t r c s

                                                                                   4.1
                                                                        ~




                                                                    .       0.16   0.14
                                                                            0.18   0.57

.
    Illstrict Total
                                                                                              Panchayat, Dharwad

          i-
                          --

                                                                                                                    I

				
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