Outside tie-ups churn out IMFL in Kerala

  • | Monday | 15th October, 2018

Of these 17 blending units are operational, while United Spirits Ltd at Cherthala and Palakkad are dysfunctional though their licences are valid. THIRUVANANTHAPURAM: Though state government claimed that 92% of IMFL (Indian-made foreign liquor) consumed in Kerala is manufactured locally, detailed statistics dispute the claim. "They are assured of commission for each case of IMFL produced by their tie-up companies. The government charges approximately Rs 6 lakh/ year as licence fee for a blending unit, while it charges approximately Rs 4 lakh/year for a brewery licence. Figures of share of liquor manufacturers, accessed by TOI, over the past three years show that bigger companies outside the state control half the IMFL supplied in state.While a miniscule share of IMFL is produced outside the state by such companies, the rest is manufactured at locally-registered units, many of which function as proxy units for the outsiders.

THIRUVANANTHAPURAM: Though state government claimed that 92% of IMFL (Indian-made foreign liquor) consumed in Kerala is manufactured locally, detailed statistics dispute the claim. Figures of share of liquor manufacturers, accessed by TOI, over the past three years show that bigger companies outside the state control half the IMFL supplied in state.While a miniscule share of IMFL is produced outside the state by such companies, the rest is manufactured at locally-registered units, many of which function as proxy units for the outsiders. The outside majors enter into a 'tie-up' arrangement with local manufacturers, who lease their men and machinery to outsiders and they manufacture products here, on commission basis per case of IMFL produced.The figures for 2016-17, 2017-18 and first half of 2018-19 show that the actual share of outside liquor manufacturers - who supply their products by producing the same at local units here - are 46.78%, 43.61% and 35.34%, respectively. This is in addition to the 8% that is brought outside the state, which would take the market share of these outsiders to over 50%.As per the data for 2016-17, some of the outsiders from Tamil Nadu Maharashtra , Punjab, Uttar Pradesh, Telangana , Madhya Pradesh and Goa have fully manufactured their products at local units like Empee Distilleries, Polsons Distillery, United Distilleries and Elite Distilleries.Sources privy to the functioning of distilleries in state, many of them either have no products of their own or keep their products to a bare minimum. "They are assured of commission for each case of IMFL produced by their tie-up companies. For the same reason, when new licence for blending units are issued, it will create more competition as they would come with advanced machinery," said a senior taxes department official.In effect, even if the government grants more blending units and brewery licences in state, it is more likely to attract such ' tie-ups ' with outsiders.At present, the state has issued licences to 19 compounding blending and bottling units, and three breweries. Of these 17 blending units are operational, while United Spirits Ltd at Cherthala and Palakkad are dysfunctional though their licences are valid. The government charges approximately Rs 6 lakh/ year as licence fee for a blending unit, while it charges approximately Rs 4 lakh/year for a brewery licence.

If You Like This Story, Support NYOOOZ

NYOOOZ SUPPORTER

NYOOOZ FRIEND

Your support to NYOOOZ will help us to continue create and publish news for and from smaller cities, which also need equal voice as much as citizens living in bigger cities have through mainstream media organizations.


Stay updated with all the Latest Thiruvananthapuram headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.

Related Articles