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Business Economy


AIBA requests govt to allow beer operations in the country

Lucknow, Apr 13 (UNI) The All India Brewers Association (AIBA) are requesting the government to allow for beer operations and sales to resume with adequate safeguards incorporated, during the extended lockdown in the country.
“The retail sales value generated by the beer industry in the country is more than INR 65,000 crores per annum (which is larger than soft drinks and juices combined). Through the sale of beer, the State Governments generate more than INR 36,000 crores of tax revenue, in the form of excise duties and VAT. This is one of the highest contributors of revenue for most State Governments” said Shobhan Roy, Secretary General, AIBA said in a press statement here on Monday.
With 83 operating breweries and a volume of over 330 million cases (7.8 ltr / case) annually, the beer industry is one of the largest employers in the country, with over 1 million directly or indirectly engaged in the production, supply, service, or procurement of beer / raw materials. Utilizing about 750,000 MT of agricultural produce per year, comprising barley, rice, wheat, sugar the industry is a key player in the agriculture production and supply chain in the country.
Mr Shekhar Ramamurthy, CEO & MD, United Breweries Limited, along with being the Chairman of AIBA commented - “We’re fully supportive of the Government’s actions in tackling this crisis. We recognize that it is crucial to slow the spread of the contagion and break the chain.
Our only request is to work together to find ways in which the economic activity could re-started in a graded manner. “
He further added, “Beer is a seasonal business with almost 50 per cent occurring in the period March to June. A two-month interruption because of the current crisis will result in a loss of INR 16,000 crores of retail sales and around Rs 7000 crores for the state governments”.
“The non-availability of beer might also result in the sale of spurious and illicit liquor, which will cause law and order issues and serious health hazards.” added Mr. Roy.
Given the consumer demand and the fact that alcohol has been classified as food under Food Safety & Standards Act of 2006 (FSSAI), the plea is it to apply the same lens and ensure parity to bring alcohol in consonance with food in the list of “Essential items” allowed during this lockdown period. In markets globally, beer comes under essential items and is retailed through supermarkets.
Mr Ankur Jain, Founder CEO, Bira 91 and member of the Board of Directors AIBA said, “Health and safety of the staff involved is paramount and we recommend this to be a good time for the Government to look at allowing home delivery through existing retailers and wholesalers, along with online delivery of beer keeping in mind the social distancing norms”. He further added, “that we’re happy to help the government form guidelines and build a framework keeping all restrictions and norms in mind”.
The All India Brewers Association has requested for relief to mitigate and reduce the impact of this crisis to the state and central government.
UNI MB SHK1811
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