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
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DEPARTMENT NEWS
June 25, 2022
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The Department conducted its preliminary sessions of Pre Placement Talks on 25th June, 2022. We were proud to invite our alumni members placed at reputed companies to discuss and guide the students sitting for placements in the academic session 2022-2023.
April 8, 2022
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The Economics department geared up for its first department trip in over 2 years to Manali, Kasol, Atal Tunnel, Sissu and Manikaran.
April 27, 2022
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The Department of Economics bid farewell to the batch of 2022, wishing them all the best for their future endeavors.
It was followed by the launch of the Annual Magazine of the Department: Arth 2022 by Editor-in-Chief Sukriti Aggarwal.
February 26, 2022
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L’Economiste is the annual department festival of the Department of Economics, Hindu College. After a long period of two years, this much anticipated celebration was organized online with full zeal on 26th February 2022.
January 28, 2022
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The Department of Economics, Hindu College, organised an insightful webinar on 28th January 2022 on the topic ‘Monetary Policy in Covid-19 Era’, which was addressed by Prof. Chetan Ghate, Indian Statistical Institute, Delhi.
September 29, 2021
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The Department of Economics, Hindu College, organised an insightful webinar on 29th September 2021 on the topic ‘Impact of Covid 19 Pandemic on the Indian Economy and the path ahead' which was addressed by Prof. Arun Kumar, Chair Professor, Institute of Social Sciences.
October 29, 2021
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The Economics Department of Hindu College successfully conducted a webinar on 29th October 2021 on the topic "The wealthier you are, the lesser is the tax you pay" by Mr. Ram Singh, Professor, Delhi School of Economics.
September 21, 2021
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The Department of Economics organised an enriching webinar on Wealth Management on 21st September 2021, with the support of Dr Nidhi Dhamija, Teacher-in-Charge, and Dr Puja Saxena Nigam, Associate Professor, of the Hindu College.
November, 2021
The department organised a two-month-long interactive Mentorship Program for the second year students to help them get an insight into different fields.
February 4, 2020
L'Economist is the annual department festival of the Department of Economics, Hindu College, that aims to bring together the brightest minds in the field of Economics.
July 10, 2021
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A panel discussion on various aspects of placement procedures, organised for the students of Economics department.
January, 2020
Department of Economics, Hindu college, successfully conducted a first-of-its-kind add-on course aimed to familiarize the students with the promising field of Behavioral Economics.
