The Indian Liquor Industry Prohibition Story
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ALCOHOL, ALCOHOLISM & PROHIBITION Cont..The
moderate use of alcoholic beverages by adults is considered normal and
acceptable in most countries. However, it has become the most widely abused
substance in the world. In fact, alcoholism is now regarded as a disease in
many countries. Alcoholism is a chronic, often progressive disease
characterized by excessive and repetitive consumption of alcohol despite a
decline in the health and social/economic functioning of the individual.
Addiction leads to dependence, which leads to physiological problems, if a
person stops consuming alcohol. In 1990, 62 million people worldwide were
alcohol dependent.
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The ills of alcohol were first documented in England
in the 18th century. By the end of the 20th century, studies around the
world had confirmed that alcohol consumption often led to addiction,
increased the likelihood of various types of injury, and increased the
chances of heart disease, cardiovascular disease, liver problems, various
cancers and nervous system disorders.
In addition, in developing countries, alcoholism led to serious social
problems such as increase in domestic violence, poverty and crime rates.
Though analysts have also claimed that mild to moderate alcohol
consumption could actually result in a decreased rate of coronary disease,
they invariably add that excessive consumption is definitely harmful. Not
surprisingly, alcohol reportedly accounted for 5-10% of the global disease
burden and resulted in 2 million deaths annually worldwide. Increasing
awareness about the problems associated with alcohol induced governments
to introduce prohibition as a tool to control its consumption. |
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Prohibition refers to the legal prevention of the
manufacture, sale, or transportation of alcoholic beverages with the aim of
obtaining partial or total abstinence through legal means. The history of
prohibition is also almost as old as alcohol itself with reports of attempts
made in Aztec society, ancient China and feudal Japan. Over the centuries,
governments have experimented with prohibition in the Polynesian islands,
Iceland, Finland, Norway, Sweden, Russia and Canada. However, only a few
countries (mostly Islamic nations) have been able to successfully implement
prohibition at a national level. Most countries that have experimented with the
ban soon lifted it. Finland, for instance, adopted prohibition in 1919 and
repealed it in 1931, and the United States adopted it in 1919 and repealed it in
1933 (Refer Box). THE INDIAN LIQUOR INDUSTRY
The Indian liquor industry is divided into two broad segments: Indian Made
Foreign Liquor (IMFL) and country-made liquor. IMFL comprises alcoholic
beverages that were developed abroad but are being made in India (whisky, rum,
vodka, beer, gin and wine), while country-made liquor comprises alcoholic
beverages made by local breweries. While many Indian and MNC players were
present in the IMFL segment, the unorganized sector accounted for almost 100% of
the country-made liquor segment.
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PROHIBITION IN THE US
PROHIBITION IN INDIA
THE DEBATE
A PROBLEM UNSOLVABLE
QUESTIONS FOR DISCUSSION:
EXHIBIT I THE INDIAN LIQUOR MARKET
ADDITIONAL READINGS & REFERENCES:
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