Date: 17/11/2022

Relevance: GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Key Phrases: Excise revenues, liquor ban’s implementation, Indian Constitution, intoxicating drinks, alcoholism, Article 47, neighbouring states, multiple hooch tragedies.

Context:

• Prohibition in Bihar is making the state lose excise revenues while spending heavily on the liquor ban’s implementation.

Key Highlights:

• Ever since the government of Bihar prohibited liquor sales in the state in 2016, it has invited scathing criticism for its substantial failure to implement the ban and for the several adverse consequences, thrust on the people of Bihar.
• The upholding of high moral ground in the state’s world of realpolitik seems to be an exercise in madness with no method.
• One of the axioms of governance is that any policy with political, social, economic, or other value ought to be first examined in the scale of implementability.
• What is not implementable may not be operationalised despite the nobility of the cause.
• Bihar has failed to apply this simple test in the present instance.
• Note: Bihar imposed complete prohibition in the state in April 2016, drawing its inspiration from Article 47 of the Indian Constitution, which directs the state to endeavour to prohibit the consumption of intoxicating drinks and drugs that are injurious to health.

The factors behind the failure of prohibition law include:-

• Smuggling of liquor from outside the state and from the neighbouring country of Nepal and its mechanism,
• Use of stolen vehicles using fake documents,
• Engaging minors to transport liquor,
• Lacuna left by investigating officers in the conduct of search,
• Seizure and investigation,
• Failure of the state to take strict disciplinary action against erring officers,
• Prohibition pushing the consumption of cheaper hooch and drugs, leading to thriving parallel economy of illicit liquor and a sharp rise in consumption of illicit drugs and resulting addiction.

Why it’s a bad idea to impose such law in Bihar?

• Bihar’s location: Bihar’s location itself made the state vulnerable. The state shares its borders with Nepal, West Bengal, Jharkhand, and Uttar Pradesh.

• None of these states practises prohibition, with the consequence that liquor is flowing into Bihar from the neighbouring states, given West Bengal and Jharkhand’s phenomenal rise in excise revenue.

• Multiple hooch tragedies: As multiple hooch tragedies, resulting in scores of deaths, struck Bihar, the state’s prohibition policy has come under increasing attack.
• Fiscally most vulnerable states: Bihar, already figuring among the fiscally most vulnerable states in the country, chose to forego a large chunk of revenue by imposing prohibition.

• For 2015-16, state excise money was estimated at INR 4,000 crores.
• Over the last seven years since prohibition was imposed, given the usual increment in excise earnings, the state has lost around INR 40,000 crores.

• State’s hospitality and trade sectors declining: Bihar, apart from losing revenue, the state’s hospitality and trade sectors are taking a hit.
• Adverse impact on the state’s social life: There is an adverse impact on the state’s social, health, and economic parameters in the six years of prohibition.
• Bail applications clogging the Patna High Court: Lakhs of prohibition cases and bail applications clogging the Patna High Court and the lower courts.
• Marked increase in the registration of criminal cases: There is a marked increase in the registration of criminal cases and arrests related to prohibition.
• Growing involvement of women and children: Especially worrying is the growing involvement of women and children in the illicit liquor trade.
• Lack of support from investigating Officers: Investigating officers deliberately avoided corroborating allegations with evidence, allowing the mafia a free run.

Way Forward:

• It is incumbent on any state that first embarks on the road to prohibition to study what happened to other countries and states that ventured down that path.
• The above mentioned examples establish that prohibition has little chance of success. Those habituated to drinking were willing to take huge risks.
• The lure of easy and good money has all the attractions to allow a thriving partnership to grow where the underground liquor mafia and law-enforcing agencies join hands to share the booty.
• It puts enormous powers in the hands of the administration to trouble and arm-twist citizens.
• Additionally, the state loses substantial revenue while it spends more on enforcement without getting the expected results.

Conclusion:

• Apart from the moral satisfaction of legally cleansing society of what is perceived as a social evil, there is nothing the state gets to show as an accomplishment.
• It is now universally agreed that women-led community-based approaches are likely to yield better results than a ban. The sooner Bihar realises this, the better it will be for the state and its people.

Source: ORF India