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.
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Moulik
Shrivastava
CLASS OF 2017-20
Consultant at World Bank
1. What kind of student were you while pursuing Economics at Hindu College? What were your involvements in the department and other societies?
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I think it's difficult to specifically classify what kind of student I was during the three years at Hindu College. Each year, each semester and each month saw me focusing and indulging in completely different activities, right from coursework, internals, Mecca, society events, house parties, GMAT, ISB application, and Placements. Each event made me shift gears and change the intensity of focus on studies and other activities. That being said, I'd advise juniors to be dynamic and soak in the vast experience Hindu College has to offer by trying and excelling in as many activities and areas that pique your interest.
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On the societies front, I was actively involved in 2 societies across my 3 years - The Finance and Investment Cell where I served as the President, and the English Parliamentary Debating Society where I led the Adjudication & Tabbing activities and represented the college for 2-3 weekends a month in the tournament seasons. These 2 experiences have been an integral part of my college as they helped me grow, learn, travel, network extensively with students from different courses and colleges, and helped build strong bonds with seniors and juniors alike–something which is tricky in a classroom setting.
To wrap up, I'd still recommend maintaining a balance between Econ and Societies (unless you want to be called a part of Ibtida Hons!). Evaluate the value you derive from your time invested in everything that you do and how that aligns with your ultimate goal.
2. What is a typical day like working as a Consultant at the World Bank?
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Presently, I work as a Consultant at the World Bank for a USD 150Mn youth employment project in Nairobi, Kenya. As is the norm with project consultants, each day brings new challenges and activities, but there is still an underlying set of objectives to deliver upon and processes that need to be conducted. I, in particular, was brought on board to bring private-sector thinking and agility that I learnt working at Bain & Company and deploy the same in a government-led project.
In a typical day, I would work with Senior Economists from the World Bank on the research design, reviews, and budget approvals; with Government Officers for planning & implementation, and tech capacity; with Survey firms and Private companies for checking on progress and distance to results. Finally, the most exciting and satisfying work is to monitor surveys of youth beneficiaries and train Youth and the Government Officers.
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All in all, working with the World Bank is halfway between work done at a consulting firm and a government agency, if you understand how those two operate. For students, it is sufficient to understand that communication, subject matter expertise, professionalism, and networking learnt through the coursework and activities in college can take you anywhere you wish.
3. How has pursuing Economics at Hindu College helped you in your future career?
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I'll try to break this down into 3 constituents – Economics, Hindu College, and Delhi University. The "Hindu College" tag brings you attention in any national setting, the "Delhi University" tag brings you recognition in any international setting, and the "Economics" tag, in particular, ensures you command respect in any room filled with people from almost any background. So remember to be a diligent Econ student first, as the entire structure of the College and the University is centered around making sure you have the best possible training in Economics as a subject – and we are fortunate to have some of the best professors ensuring students get a top-notch learning experience. Thanks to Archana Ma'am, Niti Ma'am, and Rubina Ma'am!
4. What's your advice for your juniors after completing their graduation?
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I'd keep this simple and to the point:
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A) Network – I can go on record and say that all the opportunities I have received to date are from the stellar network of seniors, batchmates, and juniors. Never underestimate the views and lasting impression your closest people have about you from all the interactions in college events, course work, society activities, exam prep, or even flat-share! You may never know how your paths may cross again and that may reward you extensively.
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B) Be dynamic and grasp skills – Throughout college and even after, don't be afraid to pick up skills & certifications relevant to your intended profession. Many batchmates have gone on to pursue a Master's degree, CFA, or even a Coursera-like platform to establish themselves.
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C) Find your niche and learn to market yourself in that regard – This one may take a while, as you explore different careers and map out your trajectory. I remember joining college with plans to pursue a Masters abroad and move into Investment Banking (you can't expect a tier-2 city 12th grader to know better) But that changed quickly! Thus, find what you'd like to do and then work towards it. Most importantly, market that skill and capability well. It's akin to what LinkedIn gurus refer to as "building your brand".
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D) Don't be afraid to fail – Personally, this is the strongest advice I can give. While regarded as a front runner in the placement season, I was rejected by at least 7 employers before getting placed. However, I never caved in, and can today humbly say that I am one of the well-placed students from my batch.