Thiruvananthapuram: As the row over low-alcohol beverages continues to intensify, official records appear to contradict the Left Democratic Front’s (LDF) claim that while in power, it had only explored permitting low-alcohol drinks made from fruits, vegetables and grains.
A scrutiny of the records shows that applications submitted by Bacardi and SDF Industries to the previous government sought permission to manufacture and market alcoholic beverages containing ethyl alcohol but no fruit content. Instead of producing liquor from fruits or other agricultural produce, the companies proposed to import spirit into Kerala and manufacture the beverages locally. The previous government approved the proposals with a clear understanding of the nature of the applications submitted.
The application submitted by Bacardi clearly stated that Bacardi Breezer contained 4.8% ethyl alcohol, while Bacardi Plus contained 8% alcohol. Similarly, the beverages proposed by SDF Industries contained 10% to 20% alcohol. Rather than using fruit as an ingredient, the products relied only on fruit flavours.
The Excise Commissioner had informed the government that the applications received did not conform to its stated objective of encouraging the production of alcohol from fruits and agricultural produce. Despite this, M V Govindan, who served as Excise Minister during the initial phase of the second Pinarayi Vijayan government, directed officials to prepare a report defining low-alcohol beverages by taking into account the applications submitted by Bacardi and SDF Industries.
As Excise Commissioner in 2018, Rishi Raj Singh had warned the government that, despite their lower alcohol content, the products were still alcoholic beverages and could end up being consumed by schoolchildren and others as substitutes for soft drinks. The government, however, disregarded this warning and proceeded with the approval process. The proceedings related to these applications were cleared by two Excise Ministers in the second Pinarayi Vijayan government at different stages.
Recently, Chief Minister V D Satheesan informed the Assembly that although the LDF government had approved low-alcohol beverages, the tax structure could not be finalised due to the declaration of elections. However, indications suggest that differences among ministers over the sale of the products, rather than the election process, delayed the finalisation of the tax regime.
There are also indications that the then Finance Minister was apprehensive that introducing low-alcohol beverages could reduce the consumption of high-alcohol liquor, leading to a fall in state tax revenue.
