The decision to affix the track and trace holograms on liquor bottles has faced resistance from dealers
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Hyderabad: The tag and trace system, which could put a check on the sale of non-duty paid liquor, thereby increasing revenue for the government, is not yet fully in place after nearly three years. The decision to affix the track and trace holograms on liquor bottles was taken in 2012 but has faced resistance from dealers.
D. Venkateswar Rao, president of the Twin Cities Wine Dealers Association, said, “Though we have installed the computers and other equipment as per the orders of government, the liquor bottle only shows up a code number instead of its origin of production and other details.”
Manufacturers are keeping track of additional expenditure incurred for affixing holograms since July 1. “We have asked for compensation for 20 paise per bottle, which is the cost of fixing the hologram,” said M. Rajeshwar Rao of the Association of Liquor and Beer Suppliers.
The matter is in court, and if the decision goes in favour of the manufacturers, the state will have to pay Rs 5 crore for the 50 lakh cases of liquor manufactured in TS since July 1, 2014. Sources say the government may decide to pass on the burden to the consumer.
Distilleries wary of new licences:
There are over 17 distilleries in TS that are opposing the government’s decision to issue licence to establish new distilleries. They claim that this would affect them.
“Present liquor production capacity of distillers in the state is 25 lakh cases and the present market demand is over 18 lakh cases. After the state’s bifurcation, the liquor demand has dipped by 2 lakh cases.
The sales would be further hit in the next two years as distilleries in AP would start operating. With a 10 per cent annual growth, the existing capacity of the distilleries will suffice for 10 years,” said M. Rajeshwar Rao of the Association of Liquor and Beer Suppliers.
Though the state is hoping for business from imported brands, whiskeys and premium brands in India are manufactured only in two-three units located outside the state. “New distilleries might bring in additional revenue, but would affect the survival of the existing companies with increased competition,” said Niranjan, owner of a distillery firm.
( Source : dc correspondent )
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