Trade hit by natural disaster, wine contractors demand relief

The Himachal State Wine Contractors’ Association on Friday appealed to Chief Minister Sukhvinder Singh Sukhu to come to the rescue of liquor traders, as the trade has been badly hit due to natural calamities in the past three month.

Addressing the media, association president Anant Ram Verma said extreme rainfall had triggered widespread floods and landslides in the state resulting in massive disruptions to public mobility and a steep decline in tourist inflow across Himachal. Consequently, retail liquor shops have witnessed a significant drop in footfall, leading to a severe impact on liquor sales across the state, he added.

“Due to natural calamities, licensees are not in a position to deposit monthly fees as mandated under the state Excise Policy for the current financial year. In light of these extraordinary circumstances, we earnestly request the Chief Minister to kindly consider a minimum 30 per cent reduction in the Minimum Guaranteed Quota (MGQ) and a proportional reduction in the Minimum Vend Value (MVV) for all retail licensees. Such a relief measure would help ease the financial burden on the license holders, enable continuity in operations and provide much-needed support during the ongoing crisis,” Verma added.

He said licensed liquor traders are struggling to survive. Hundreds of contractors were declared defaulters last year as they were unable to pay their licence fee and similar was the situation this year, he added.

Verma said in past two years the liquor vends were auctioned at significantly higher rates, further burdening vendors. On the top of that, the state government imposed various kinds of cess per bottle, increasing operational costs. Most contractors have already exhausted their working capital and bank credit limits, with many unlikely to pay their dues after December.

Verma said the illegal liquor trade in the state had further made the matter worse. He said if the illegal liquor continues to flood the market unchecked, the stakes grow higher — not just for legitimate businesses and the government revenue, but for public safety as well.

Verma said on behalf of all licensed liquor traders of the state he assured full commitment in complying with all applicable policies and regulations and request only a compassionate consideration in response to the natural disaster that continues to affect the state adversely.