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?
. . .
​
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.
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In conversation with Prof. Nidhi Dhamija...
Q. How did you decide to study economics? What attracted you to the subject?
A. I enjoyed it in my 11th and 12th class, and very frankly when I was joining my college, I was confused between B.com and Economics like most of the students are, but then I eventually decided to pursue Economics. I wanted to pursue Eco, and maybe one of the reasons could be that my mother was also MA Economics, so maybe that could have been one of the influences. She taught me in my 11th and 12th, and I enjoyed it.
Q. Tell us something about your student life? How were you as a student, were you inclined more towards academics or extracurricular activities?
A. Very frankly, very boring. [Why so?] If you want an honest opinion, I think I was never very active in extracurricular activities or active academically. Also that I can tell you that I topped this paper or that. Extracurricular activities I attended all of them, but I never participated. Academically also I was decent, in the sense that I was in the top 10-15 of my class, but I was never the topper.
Q. If you would require us to read one thing before we graduate, what would it be and why?
A. Since I teach Macro[economics], I would suggest reading the original Keynes because that’s not something that we really teach, but that is from where the whole Macroeconomics that we teach is originating. So original Keynes book or the original Wealth of Nations Book.
Q. If not an economics professor, what would you want to be?
A. Well, like you are going through different phases, even I had gone through different phases. There was a time when I wanted to be CA, but then I decided for eco[nomics]. There was a time when I wanted to do an MBA, and I sat for my MBA exam but then I decided for Masters in Economics. Even after my Masters, there was a time when I wanted to go into the corporate sector and did try my hand there for a very short time but then eventually decided to be in Academics. But it's not that this part was really jotted out from the beginning. It’s also that as I evolved as a person, I took my decisions accordingly.
Q. And what would you suggest to your students? Should they have a plan jotted out or just go with the flow?
A. I think you should go with the flow. Go with what you think is right for you and what you think you want to do. I think the best thing is you should realise what you want to do rather than what others are doing. So what you want to do, what you think will give you the satisfaction and happiness is something you should be pursuing. And it's not that what you decide today will always be right for you. Maybe after a few years, you would want to change. So be it; you can always experiment here and there a bit.
Q. How do you typically spend your weekend?
A. Sleeping, roaming around. Non-pandemic days, mostly movies.
Q. An economist you would like to have lunch with?
A. Difficult question, but Joseph Stiglitz.
Q. What song do you know all the lyrics to?
A. Hindi many, but ‘Hothon Se Chhulo Tum’.
Q. Your favourite travel destination?
A. Iceland
Q. A phrase you use most often?
A. Just chill
Q. One of your favourite memories with your students?
A. In one of the batches, we became very close, and we would go out for lunches, coffee, etc. So that would be one of my most precious moments with the students.
Q. Your favourite superhero, if you watch superhero movies?
A. Please don’t ask my favourite superhero. I have watched all your marvel, X-men, DC Comics movies, courtesy my husband, but please don’t ask my favourite superhero.
Q. One of the best pieces of advice that your parents have ever given you?
A. Be confident in yourself and the choices that you make in life.
Q. In the next set of questions, you have to choose from the two options: Neoclassical Economics or Keynesian Economics?
A. Keynesian Economics
Q. Dawn or Dusk?
A. Dusk
Q. Tea or Coffee?
A. Both, because I am very specific with my timings of tea and coffee.