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
​
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.
Arth
.png)
THE FASHION INDUSTRY: WHERE IT STANDS IN 2022
In 2022, the global fashion industry is once again finding its feet, after nearly two years of disruption. New digital frontiers provide a nexus for growth, which will be a key priority in the upcoming year. The industry faces several challenges even today, such as patchy demand and supply chain disruption.
​
IMPACT OF THE PANDEMIC ON FASHION LABOURERS
As the world faced the pandemic in collective isolation, retailers shut down their doors all across the world and this led to a shift of the consumer base to the online market. While many have been rooting for an end to the overconsumption of clothes and propagation of fast fashion for many years preceding the pandemic, the unexpected halt in manufacturing had the
worst impacts on the vulnerable i.e. those at the lowest rung of the fashion supply chain. IndustriALL, a global trade union that works to give labourers around the world a platform to voice their concerns, said that millions of garment workers have lost their jobs with no financial or social safety nets to help them during this difficult time.
It is common practice across the industry to pay suppliers weeks or months after delivery, rather than an upfront payment. This means that suppliers pay from their own pocket for raw materials used to make products for different brands and recover this money once they receive their dues from the brand itself. Major fashion houses cancelled orders and halted payments for orders already placed, on which work had begun, at the onset of the pandemic,
paying no heed to the effect of their decision on labourers. Bloomberg reports that about 1,089 garment factories in Bangladesh have had orders cancelled worth roughly $1.5 billion due to the coronavirus outbreak. In these circumstances, factories had no choice but to lay off workers. Nazma Akter, the executive director of AWAJ, a grassroots labour rights NGO, explained, “These workers now don’t know how they will manage costs for food, rent and other necessities. They can’t even imagine what they’ll do if they or a family member needs medical treatment for COVID-19. The meagre income these workers earn is barely enough to cover their living costs, and as a result, they have little to no savings set aside to deal with a crisis such as this.”
Fashion, however, is not just produced in factories. Fashion is a craft often made in informal environments. Artisanal craft is the second-largest source of employment across developing nations. WIEGO, an organization focused on empowering the working poor, especially
women estimates that there are close to 2 billion informal workers around the world without basic labour, social and health protections who now face desperate economic circumstances due to the pandemic.
THE FASHION INDUSTRY: 2020-2021
The industry faced a 20% decline in revenues in 2019-20 as earnings before interest, taxes, and amortization (EBITA) margins declined by 3.4 percentage points to 6.8 percent. In 2020, 69 percent of companies were value destroyers, according to the readings of the McKinsey Global Fashion Index (MGFI), compared with 61 percent in 2019. Geographically, China was the standout performer over 2021 as its economy recovered much faster than other countries and 2022 is likely to see a growth in the industry driven by China and the USA.
WHERE THE FASHION INDUSTRY IS HEADED IN 2022
The fashion business will pick up momentum as consumers will unleash their pent up buying power. As the industry pivots towards growth, potential shortages of raw materials, products and resources may prove to be an obstacle due to rising shipping costs and choked supply chains, undermining efficiency. Hyper interactive digital environments and investment in e-commerce is becoming a long-term trend and companies are expected to seek fresh approaches to online shopping. As brands delve into the digital market with intense competition, they must work harder to protect their consumer base.
WHAT WE HAVE UNDERSTOOD SO FAR
The crux of the conundrum faced by the fashion industry going into 2022 is that, with new opportunities and a chance to recover losses and establish a strong base for the future, there is little to no room for missteps as decision-makers must manage demand in both digital and offline setups and revive the supply chain. The last two years are testament to the fact that as economies recover, demand will follow suit and hence fashion houses only have to focus on retaining their consumer base, changing according to consumer needs and expanding growth.
References
Vindhya Venkatesh
Editor, Editorial Board
* The comments section is open for a healthy debate and relevant arguments. Use of inappropriate language and unnecessary hits towards
the department, the newsletter, or the author will not be entertained.