Gujarat high on income from alcohol

Anti-prohibition campaigners may often use the economic argument to demand an end to prohibition in the state.

However, a look at income of Prohibition and Excise Department of the state shows that there is a continuous rise in income from alcohol and other prohibited substances. This income, of course, does not include illegal booze coming into the state, considering only medicinal and licensed consumption of the spirit.

It should be noted that the department has right to issue permits to both industries and others for use of prohibited substances like alcohol and some drugs. Industries and individuals applying for licences have to pay a certain fee depending upon quantity of alcohol/banned substance that they want to use. These substances are part of composition of medicines and toiletry products (M&TP) and for personal consumption as well.

The department earned Rs63.93 crore in 2010-11 by way of excise income from alcohol and other products. M&TP products accounted for Rs27.47 crore of this figure, while liquor contributed Rs23.69 crore. In 2011-12, overall income till January is Rs62.13 crore, and is expected to cross Rs70 crore mark by March.

Liquor, so far, has contributed Rs22 crore of this figure, estimated to touch Rs25.26 crore by end of fiscal.

Sources said that the department also draws its income from excise charged on import of liquor from other states to be eventually sold to valid permit holders.

The income from excise collected from M&TP industries is also on the rise.

"Pharmaceutical industries require alcohol for production of certain products. Given the number of such industries and rise in their production, demand for input material like alcohol is also the rise. They, too, have to apply for requisite permit. The fee for the same depends on quantity imported," said an official.