Rajahmundry: Liquor trade turns illegal practice is becoming rampant day-by-day as the sales of low brand liquor keeps growing
Rajamahendravaram: Liquor trade turns unviable, traders resort to illegal mixing of low brand Liquor keeps growing.
The state government failing to enhance the margin of profit, traders are resorting to the illegal practice of ‘brand mixing’ to overcome losses in the business in the state.
A section of traders is mixing low brand 180 ml liquor, which costs about Rs 50 with high brand liquor, which costs about Rs 90 for 180 ml in some proportion. So that they can sell low brand liquor at high prices to make extra money. This illegal practice is becoming rampant day-by-day as the quantum of sales of low brand liquor keeps growing.
The liquor traders maintain that their business was becoming enviable as they were supposed to pay license fee one year in advance, hire a shop by paying exorbitant rents, engage workers by paying wages, set up a system to maintain accounts, clear transport, power bills, taxation and meet other expenditure.
One of the liquor traders said, “The excise authorities reduced the license fee to seven per cent, but they reduced margin of profit to 7.5% from the earlier 22%. Moreover, maintenance costs, including enhanced rentals to liquor shops and others were causing an additional burden resulting in the liquor trade becoming highly enviable.”
Meanwhile, excise sources maintained that the functioning of the department had derailed in the last several months with no review meeting being held by the senior officials, while the number of excise offenses kept increasing.
A senior excise official said, “The liquor trade is no longer profitable of late, resulting in a section of traders resorting to the illegal practice of brand mixing and other excise offenses.”