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.
. . .
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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.
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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

In conversation with Prof. Anshika Sagar

Vismay: What motivated you to choose economics?
Dr. Anshika Sagar:
So, I had a rare combination of Science with Economics for my 11th and 12th. I was quite sure of the fact that I didn’t want Engineering. My mother has a Science background and she was extremely specific that till 12th, everyone should know science as it can help you in your daily life.
The friction came into existence after 12th when I was getting into a better college for Maths (Hons.) as compared to the one I was getting for Economics. But, I was pretty clear from the get-go, maths wasn’t something I could do for three long years. “What can I do for three years?” was the driving force behind my decision. I was a topper in Economics in school; I did have that inner validation and confidence in the subject. I had really good teachers in 11th and 12th, so it was a natural segue for me. I enjoyed Microeconomics, and still like it much more today as well. And the thing about Economics that I love the most is its everyday relatability, whether it's demand, supply, consumer behaviour, etc.
Spriha: A memorable moment from your classroom.
Dr. Anshika Sagar:
Actually, quite a few. As both of you have been my students, you guys might be aware of my classes. I try to keep it less about the typical teacher-student thing and more about opening the floor and having fun.
So, I had just gotten done with my viva and was just awarded my Ph.D. When the defense and everything got over, the next day your seniors (Batch of 2022) got a cake for me with the words, “Congratulations Pyaari Dr. Sahiba!” It was really overwhelming as it was the first time someone called me a “Doctor” officially. To be really honest, I was not expecting this degree of warmth and love from them. And the reason is the fact that a majority of my relationship with this particular batch of students was online. It was a genuinely touching moment that I’m never going to forget. Many batches have been a part of my Ph.D. and that moment felt like the culmination of that beautiful journey.
Vismay: If not teaching, what would be your profession?
Dr. Anshika Sagar:
It’s really hard to answer this question! As far as I remember, when I had to make this decision regarding what I wanted to do, teaching was the only thing that came to my mind. I was getting the validation and feedback right from the first year itself which reaffirmed the fact that maybe I was in the right profession after all. And definitely, I was doing it with a lot of passion.
Again, it’s never occurred to me, but the next thing that I like reading about are social issues, development-related, specifically those with a legal context. I have these strong feelings about certain social issues. I also really enjoy watching things based on social issues, and listening to debates based on various legal issues. So, maybe I would have thought about Law seriously. Because I vividly remember that when I was doing the ‘career-counseling’ thing that happened in my school days. I was of the opinion, and my parents as well, that I have a strong way of articulating my feelings. But the counselor was of the opinion that “She’s too soft for Law”. Now, I don’t know what that meant, but it probably implied that Indian Law required really aggressive people, and I that could be very emotional.
Spriha: If you would require us to read one thing before we graduate, what would it be and why?
Dr Anshika Sagar: I don't have a go-to book because I think it is very specific to everyone's choice but recently I read a book named Justice. It is a book by Michael Sandel. It's slightly philosophical so it is not as smooth and easy to read as any other novel. It talks about a lot of different dilemmas which makes it very interesting. The book is neither too technical nor too hard to understand but it requires us to think about situations from a different lens. So to broaden our horizons one should definitely read this book.
Spriha: A place you would like to visit.
Dr Anshika Sagar: Greece is the place that I have on my mind right now because it's really very beautiful.
Vismay: If you were to choose between one, Microeconomics or Macroeconomics?
Dr Anshika Sagar: Microeconomics, for sure. Although as a teacher I am okay with both but when it is about your interest and your in-depth knowledge about a particular subject, then it is microeconomics for me. Probably it is because my thesis was also development economics related but, I just feel it a little easier to imagine things from a microeconomics perspective than a macroeconomic perspective.
Spriha: Tell us something about your student life? How were you as a student, were you inclined more towards academics or extracurricular activities?
Dr. Anshika Sagar:
During my school life I was not very confident. Deshbandhu changed this about me. I became very decisive, independent and focussed here.
During my undergrad I was more into studies. I was one of those students because of whom others could not Mass Bunk the class. I was a bit righteous, I think. I did less of masti and I regret that alot because you never get to do it again. I also regret not going to get-togethers and parties. I worked with a professor on his book in my second year as an editor.
For the duration of my entire first year, I was focussed on getting a migration to another college.For that I needed a good percentage. Luckily for me, I was the topper of my college in my first year. But, this was precisely why I did not get the NOC from my TIC at Deshbandhu. My dad was really upset. So, I could not change my college but I was really thankful for my undergrad years. I had a nice group of friends.Those three years were really nice and I was so productive.
Vismay: An economist you would (Living or dead) like to have lunch with.
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Dr. Anshika Sagar: I think it would be Karthik Murlidharan. He is a professor at University of SanDiego. Probably because he is as passionate about education as I am. I have attended his lectures and he is very thorough with the content. I have had short discussions with him as a part of summer school. He sowed the seeds for my thesis in a sense. So I'd like to have a longer meeting with him. But there are many other people like Arvind Subramaniam. He is a very nice speaker and he has a lot to offer especially for the Indian Economy.
Spriha: An advice you would give to your students.
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Dr. Anshika Sagar: Firstly, Follow your passion. That is something which will never betray you. It might be unconventional, people might not understand it, even you might want to change it at some point but it will not let you give up. As long as we have something to look forward to, we would not succumb to depression and helplessness. Secondly, Be loyal with your efforts. Don’t do it just because you have to do it. Outcomes are often murky. So, don’t look at the outcome to make the decisions.