Kerala’s state-run beverages corporation, BEVCO, has proposed a plan for home delivery of liquor to increase revenue and reduce overcrowding at retail outlets.
The Kerala State Beverages (Marketing & Manufacturing) Corporation Limited, known as BEVCO, has submitted a proposal to the state government to initiate home delivery of liquor through online sales. This plan is part of a broader strategy to boost state revenue and manage congestion at retail stores.
Implementing such a system would necessitate changes to Kerala’s Abkari Act, which currently governs alcohol distribution in the state. According to the proposal, individuals aged 23 and above would be allowed to order alcohol online, contingent on mandatory age verification. This move is expected to not only streamline the sales process but also enhance state revenue significantly.
This isn’t the first time Kerala has explored digital solutions to manage liquor sales. During the COVID-19 lockdown, the state introduced a virtual queue system through an app to control crowding at liquor stores. However, home delivery wasn’t made available to the general populace during that period. A temporary exception was made to deliver liquor to individuals experiencing withdrawal symptoms upon presentation of a doctor’s prescription.
Comparing with neighboring states, Kerala operates relatively few retail liquor outlets. BEVCO manages approximately 278 stores, which is considerably fewer on a per capita basis than in states like Tamil Nadu and Karnataka. This shortfall is a key factor behind the lengthy queues and crowded conditions at these retail locations, an issue BEVCO hopes to alleviate through home delivery.
Alcohol consumption in Kerala is notably high, and liquor sales represent a crucial revenue stream for the state. In the 2023-24 fiscal year, sales exceeded Rs 19,000 crore, marking it as one of the largest income sources. The state government depends heavily on this income to finance various public services and infrastructure initiatives.
Proponents of BEVCO’s proposal argue that home delivery will not only boost overall liquor sales—particularly of premium brands—but also increase government revenue. Additional advantages cited include easing long queues and reducing the crowded conditions prevalent at retail outlets, which are frequently criticized for their inadequate facilities, especially affecting women and the elderly.
Despite its potential benefits, the proposal is met with significant opposition. Social and anti-alcohol groups contend that the home delivery system could exacerbate alcohol consumption and related issues, like alcoholism. There are also apprehensions about the risk of underage drinking, notwithstanding the proposed age verification procedures. Moreover, political pushback and resistance from traditional retail associations have historically posed substantial challenges to similar initiatives.
While Kerala is deliberating this proposal, several other Indian states have already implemented or tested liquor home delivery services. States such as Odisha and West Bengal currently permit home delivery of alcohol. During the COVID-19 lockdowns, states like Maharashtra, Jharkhand, and Chhattisgarh temporarily adopted this model to prevent virus spread.
Further, regions including Delhi, Karnataka, Haryana, and Punjab have also experimented with pilot programs, often collaborating with renowned online delivery platforms like Swiggy and Zomato to align with evolving consumer preferences and increase tax revenues.
The proposal from BEVCO continues to be evaluated as Kerala weighs the potential economic and social impacts of initiating home delivery for liquor sales.