Alcohol Industry and State Income
- Part 1 -

Chingakham Dina / Arambam Karamjit *

Imphal West Police's drive against Alcohol for preventing accident during New Year Eve on Dec 31 2015 :: Pix - Shankar Khangembam

Wine and alcohol is as old as the history of human being. It is dated back to 10,000 BC. It has history that meitei as well as other communities drank alcohol but the adoption of Vaishanavism by meiteis changed their food habit and stopping drinking at least openly (Iboyaima Laithangbam; The Hindu,October 27, 2014). Almost all countries and communities produce alcohol, wine and whisky. Rice whisky also knows as Yu and rice beer of Manipur has different peculiar taste. Other countries also produce rice whisky.

The harm from alcohol consumption is widely perceived without any further explanation. People's mentality and perception is different from one community or culture. In other countries, the government and the people trap the opportunity of economic benefit, income generation and employment generation from alcohol industry. We also can take this opportunity by implementing new alcohol policy.

Now in Manipur people's contribution as tax to the govt. is not enough to run the government. We are always dependent to central govt. We cannot wait money from Central government all time. Our chief minister, MLAs and other business minded people can see the scope of alcohol industry and came forward to adopt a new policy about alcohol and whisky production, export to other States or to foreign countries. We are still in controversy to decide whether to allow license or not now.

Thailand took this opportunity 82 years ago by issuing license for alcohol industry in 1933. They are very much advance in their business. They know the benefit and harm of alcohol but they do not underestimate huge income, revenue, job creation from the industry Business comes first in their head. On the contrary we are facing dilemma of identity, uncertainty about our own food and drink.

How much revenue Thailand collect from alcohol?

In 2009, Thai government collected 86,975 million Thai baht as alcohol tax (Dr. Areepong Bhoocha-oom, Director General Royal Thai Excise Department). They collected 133.06 billion Thai baht in 2011. This amount is roughly equal to 266 billion Indian Rupee (or Rs 26600 crores).

There was a significant increase in tax revenue in two years time. This income does not count the profit made by alcohol manufacturing companies, employees' income, benefits on farming, supply chain's business, incomes of individual bars, vendors etc.

Who make alcohol and beer from rice?

We are not the only producer of rice Whisky and rice beer. Lao khao of Thailand, Lao-lao of Laos, Bau Da of Vietnam, Yuk Bing Shiu Jiu of China are some examples. Bau Da of Vietnam has similar color and flavour like Manipur's rice whisky. All these countries try to promote their local whisky and beer product for commercial purpose to support people and to generate state income.

Andro, Sekmai, Phayeng, khurkhuand and other Lois and chakpa villages who are categorized as schedule caste and different communities of schedule tribes still maintains their food culture since time immemorial. These communities produce alcohol as part of their culture and related to ritual function and ceremony but other communities changed food and drink babit after Vaishanavism adoption. If we closely look into, there are many more communities and villages that produce whisky and rice beer in Manipur.

How much is our alcohol consumption level?

Many civil society organizations, clubs, womenfolk, people who are concerned about health always give very reasonable warning and argument about the possible health problem related to alcohol consumption. Their advice is always valuable and eye opener for the society and their contribution. Here is the fact about alcohol consumption in litre per head per year.

Belarus is the no. 1 country where people consume highest amount of alcohol in the world. In 2010, their consumption rate is 17.5 litre per head. This year, 2015 she stands second position with 17.1 litre per head and Moldova became no.1 with 17.4 litre per head in 2015.

In 2010 India was at 119th position of alcohol consumption level with 4.3 litre per head but this year, 2015 India's consumption level is higher with 4.6 litre per head (Source: Wikipedia, WHO report, 2014).

Why do we need support for our local product?

It is a matter of business, income, and employment. We have seen numerous civil societies came forward to ban local product. The government had announced Manipur as dry state but it is known fact that almost everywhere we can buy, we can drink local whisky or foreign liquor, beer, wine etc.

Every function, social gathering, and at party, people drink even though Manipuris are not open to the subject. It is available everywhere, accessible to anyone. Ban has not been successful and it is beyond possible. Drinks are associated with culture and ceremony in some areas.

So, how could you ban a cultural related food of other community because of what you are not part of it or you don't like it. Then why don't we change our move, strategy and look from different perspective to bring more income, more job for the whole state and for the individual like what Thailand is doing -just to highlight the situation.

Present scenario of whisky making in Manipur

Let us calculate the reality behind the scene of whisky making in Manipur. How much money can a whisky maker earn from this profession at present now? The amount of whisky extracted and the price of whisky are different from one village to another. However profit margin is more or less the same in Sekmai, Andro or Khurkhul etc.

Raw materials are rice, firewood, hamei (yeast) and water. In this research, we calculate raw material, price, and final output based on production at Sekmai. On an average, a woman can produce about 45 litre of whisky from 50 kg of rice per day using traditional method.

Amount of rice used to extract whisky =50kg
Amount of firewood used to produce final product =50 kg
Total expenditure on rice (Rs25/kg)---------- 50X25 =Rs 1250
Total expenditure on firewood (Rs 6/kg)-----50x6 =Rs 300
Total amount on hamei (yeast)----------------- =Rs 50

Grand total expenditure =Rs 1600
Total value from 45 litres of whisky (Rs 45/litre)---45x45 =Rs 2025
So, Net profit is---------------------- Rs2015-Rs1600 =Rs 425

In order to get net profit Rs 425, the labour works around 8 hours. Net profit per hour is Rs 53.12. This is very low profit margin for those whisky maker. But in a state where unemployment is unimaginably high, this is another option for employment. We are sure there might be hundreds of thousand who cannot earn this amount of money in Manipur.

To be continued....