The lovely tale of Liquor
during Lockdown and before
At every stage, addiction is driven by one of the most powerful, mysterious, and
vital forces of human existence. What drives addiction is longing —
a longing not just of brain, belly, or loins but finally of the heart.
Cornelius Platinga
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The use of alcohol in India for drinking purposes dates back to somewhere between 3000 and 2000 BC. An alcoholic beverage called Sura which was distilled from the rice was popular at that time in India for common men to unwind at the end of a stressful day. . Yet the first mention of Alcohol appears in Rig Veda (1700BC). It mentions intoxicants like soma and prahamana. Although the soma plant might not exist today, it was famous for delivering a euphoric high. It was also recorded in the Samhita, the medical compendium of Sushruta that he who drinks soma will not age and will be impervious to fire, poison, or weapon attack. The sweet juice of Soma was also said to help establish a connection with the gods. Such was the popularity of alcohol. Initially used for medicinal purposes, with time it evolved and became the beverage that brought life to social gatherings, and eventually consuming alcohol has become a habit for many.
With such a rich history of not just humans but also of the gods,
what is a worldwide pandemic to stop anybody from drinking?
. . .
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According to a report released by the World Health Organisation (WHO) in 2018, an average Indian drinks approximately 5.7 liters of alcohol every year. In a population of casual and excessive drinkers, with the shutters of liquor stores down, it must have been extremely difficult for “certain” people to survive lockdown. In the first two phases of lockdown, the desperation had quadrupled prices of alcohol in the Grey Market of India. Also, According to Google Trends, online searches for “how to make alcohol at home” peaked in India during the fourth week of March, which was the same when the lockdown was announced. As a consequence, a few people died drinking home-brewed liquor. People committed suicide due to alcohol withdrawal syndrome. Owing to the worsening situation and to reboot the economy, some states decided to open licensed liquor stores in the third phase of the COVID-19 Pandemic lockdown in India. This decision was the worst best decision the state governments could take. The kilometer-long queues in front of liquor stores were evidence that a pandemic can turn your life upside down yet your relationship with alcohol cannot move an inch.
The love in the hearts of those who are addicted was explicit. We might have seen addiction, we might have witnessed desperation but what happened in the month of May was madness, not just in terms of the way people pounced but also in the way the government earned. According to a report by Hindustan Times, on the first day of the third phase of Lockdown, the Indian state of Uttar Pradesh recorded a sale of over Rs 100 Crore from liquor. On the second day of the reopening of Liquor stores, Karnataka reported sales of 197 crores in a single day which was the largest ever. Eventually, the prices of Liquor were hiked to 100% to discourage people from drinking.
. . .
​
There was a special corona fee that was imposed in Delhi by Chief Minister Arvind Kejriwal. A 70% corona fee was imposed in Delhi, yet the sales did not drop. The entire situation was a disaster for the law enforcement officers, social distancing was easily abandoned and a basic code of conduct was happily violated. Despite the chaos created, the states continued to collect revenues. Home delivery of alcohol was allowed in Maharashtra and e-tokens were sold in Delhi.
​
Demand for liquor is inelastic which means that
the sale of alcohol is not much responsive to change in prices.
In general, since alcohol policy is a state subject in India, revenue from Liquor is a cash cow for state governments. In 2018 and 2019, four states collectively collected about 20,000 crores in taxes from the sale of liquor. As much as the state earns from the sale of Liquor it is undoubtedly, a threat to the Economy. Consumption of alcohol has dire health consequences. When a person consumes an alcoholic beverage, there is a rise in BAC because of which there is a gradual and progressive loss of driving ability because of an increase in reaction time, overconfidence, degraded muscle coordination, impaired concentration, and decreased auditory and visual acuity. This is known as drunken driving. (V. M. Anantha Eashwar, 2020) Drunken driving is the third biggest cause of road accidents and over speeding in India. Road accidents are not it; alcoholism causes sleep problems, heart, and liver issues. Also, it is not about an individual’s life, it ruins the lives of all people concerned.
Addiction also causes economic loss. In 2000, Vivek Benegal and his team assessed 113 patients admitted to a special de-addiction service for alcohol dependence. They found that
the average individual earned a mean of ₹1,661 but
spent ₹1,938 per month on alcohol, incurring high debt.
They also found that 95% did not work for about 14 days in a month. They concluded that it led to a loss of ₹13,823 per person per year in terms of foregone productivity. A more recent study, Health Impact and Economic Burden of Alcohol Consumption in India, led by Gaurav Jyani, concluded that alcohol-attributable deaths would lead to a loss of 258 million life-years between 2011 and 2050. The study placed the economic burden on the health system at $48.11 billion, and the societal burden (including health costs, productivity loss, and so on) at $1,867 billion. “This amounts to an average loss of 1.45% of the gross domestic product (GDP) per year to the Indian economy,” the study said. (Mint, 2020)
Setho ka Gaon
With each passing day, the ‘curtain of separation’ weighs down on the women of Afghanistan, paving the way for tyranny to thrive.
Arth
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ARTH SEASON 2
EPISODE 2 - Autumn Reads
Arth is the newsletter of the Department of Economics, Hindu College.
This publication is sourced by objectively intrigued students on key subjects and events in the field of economics.
ARTICLES
FINANCE & ECONOMICS
THE SUNSET OF A GREAT INDUSTRIAL ERA
After observing the two industrial revolutions, the Third Industrial Revolution is expected to take place in Germany which will be a new convergence of communication, energy, and transportation.
CORONA BONDS IN EUROPEAN UNION
This pandemic has taken a toll on the economies all over the world. The author discusses how the recent decision taken by the European Union is going to be a game-changer in the fight against the economic challenges posed by the coronavirus and why there is a need for the European countries to stand in solidarity with each other in these tough times.
INTERNATIONAL TRADE
GI TAG & ITS ECONOMIC
SIGNIFICANCE
The GI tag ensures that no one except the indigenous producer gets to use the popular product name for manufacturing and selling. How viable is this concept if there has been a history of regions embroiling in conflicts?
IMPACT OF PROTECTIONISM & TRADE WARS ON INDIAN & GLOBAL ECONOMY
Two Economic Super Giants. One Ferocious Trade Feud. But everyone
is at risk. Read more to deeply understand how this trade war is crumbling the global economy.
GOVERNANCE & POLICY
THE ECONOMICS OF THE FARM BILLS OF 2020
A deep enquiry into the intricacies and complexities of Farm Bills introduced in 2020. The author thoroughly dissects how these three bills affect the farmers and what is in the store for big and small farmers.
WHY WILL DONATION NOT HELP?
When the video went viral of the old couple shedding tears about their helpless situation it reached almost everyone who has a smart phone. While the immediate response was heartwarming, how does it play out in the long run?
POPULIST ECONOMY AND RIGHT WING
The right-wing populist economies are ambiguous in nature, every policy is based on ideologies and social structure. Some common aspects of the fiscal and foreign policies of these economies are common to all and concern for all. The effects of these are different in short run and in long run.
BUSINESS
TECHNOLOGY
SOCIO-ECONOMIC
DIGITAL DIVIDE OF ONLINE CLASSES
Samiksha Sethi takes us through the several challenges that India faces in bringing online classes to people’s homes. While the pandemic came as a surprise to all, the severity of its impact on the poor has been unmatched. In this article, we take a look at the situation with special focus on education and online schooling.
AIR INDIA - A SAGA OF MISMANAGEMENT
The story of how the Palace of the Sky faced its sky fall. Read more to understand about this misfortune and gain important insights from it.
THE LOVELY LIQUOR TALE DURING LOCKDOWN
When some Indian cities eased the grinding restrictions on liquor shops in the third phase of lockdown, long queues were seen outside liquor shops across the country. The manic rush was because of the pent up demand for alcohol consumption. This was the worst best decision the state governments could make.
