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Rethinking Alcohol Control in India

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June 21, 2025

Mains Syllabus : GS II - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Why in the News?

Recently Maharashtra has increased excise duty on Indian Made Foreign Liquor (IMFL) by 50% - 60% last week.

What are the determinants of alcohol consumption?

  • Biological Factors- Some individuals are genetically predisposed to addiction.
  • Alcohol activates the brain’s reward system - similar to nicotine or cocaine, praise, and money - making it habit-forming.
  • Psychological Drive -  People drink to relieve stress, anxiety, or experience euphoria and become habituated.
  • Social Environments - Urban lifestyles, peer pressure, and glamourised portrayals in media have normalised alcohol use.
  • Commercial determinants - The industry has broadened its product portfolio with offerings such as fruit-flavoured spirits, pre-mixed cocktails, and other ready-to-drink options, making alcohol more appealing to new and younger users.
  • Promotional Tactics - Despite legal advertising restrictions, promotional tactics persist through surrogate advertising.
  • It involves brand sponsorships, and strategic product placements in Bollywood films and OTT content, where the depiction of alcohol has doubled over the past two decades.
  • Social Media Influence - Alcohol-related contents (ARC) have amplified in social media.
  • Easy Accessibility - The placement of liquor stores in residential and high-traffic areas, ensures easy access and everyday visibility.
  • Branding and Marketing - Packaging shapes consumer perception - sleek bottles, international labels, and premium branding enhance the aspirational value of alcohol.
  • Affordability - Indian Made Indian Liquor (IMIL) remains cheap and accessible to lower-income groups, especially in rural areas, while growing disposable incomes in cities have made alcohol increasingly affordable for the urban middle class.
  • Policy Influence - The alcohol industry wields significant influence over regulation, often resisting stricter laws by emphasising its contribution to State revenues through excise taxes.

Status Of Alcohol Consumption In India

  • Consumption Status - 23% of Indian men and 1% of women consume alcohol (NFHS-5).
  • Heavy Episodic Drinking - India also records one of the highest rates of heavy episodic drinking, with lakhs needing clinical and social support.
  • Increase in Per Capita Consumption – It has increased by ~240% in the last two decades.

What are the impacts of alcohol consumption problem?

  • Personal Health Issue - Alcohol consumption significantly raises the risk of injuries, mental illness, and non-communicable diseases, including cancer.
  • Personal Social Violence - Beyond health, alcohol use is associated with aggression, intimate partner violence, crime, suicides, and  risky behaviour.
  • Family Issues -  It drives households into financial distress, often reinforcing generational poverty.
  • Productivity Losses - In 2021, alcohol-use contributed to approximately 2.6 million DALYs (Disability-Adjusted Life Years) in India, reflecting the combined toll of premature deaths and years lived with illness or disability.
  • Economic Cost - The estimated societal cost of alcohol-related health is Rs. 6.24 trillion.

What is the alcohol-policy landscape in India?

  • State Jurisdiction - Alcohol regulation in India falls under State jurisdiction, granting each State authority over legislation, excise taxes, supply chain, licensing and manufacturing, sale and consumption restrictions, prohibition, and pricing.
  • Regulatory Variations Across States - Bihar, Gujarat, Mizoram, and Nagaland enforce prohibition, while Andhra Pradesh, Haryana, Kerala, Manipur, and Tamil Nadu had previously imposed similar bans.
  • Toddy Regulations - Kerala’s new Akbari Policy markets toddy as a “natural, traditional beverage,” while Andhra Pradesh is introducing a policy offering alcohol for 99 to ensure “quality, quantity, and affordability.”
  • Online Delivery - Meanwhile, some States are exploring online alcohol delivery through platforms like Swiggy, Zomato, and Blinkit, contradicting efforts to restrict alcohol access.
  • Difference in Drinking Age - The legal drinking age differs across States, ranging from 18 to 25 years.
  • Pricing Regulations - Alcohol pricing regulation exists in 19 of 33 States/UTs, with nine States setting only maximum prices while others setting both maximum and minimum prices.
  • Taxation - The GST Act excludes liquor from sales tax, leaving alcohol taxes to States, often vaguely defined in excise policies.

What are the national policies around alcohol regulation?

  • National Policies  -  India lacks a unified national policy on alcohol regulation but some policies addressing single aspects such as drunk driving or prevention of alcohol use exists.
  • Exclusion from Narcotic Drugs Policy - Alcohol was excluded from the National Policy on Narcotic Drugs and Psychotropic Substances (NDPS) 2012 despite being a common psychoactive substance followed by cannabis and opioids.
  • Nasha Mukta Bharat Abhiyan - Alcohol regulation was included in the National Action Plan for Drug Demand Reduction (NAPDDR) 2021-22 under Nasha Mukta Bharat Abhiyan.
  • Scattered Regulations - The Ministry of Social Justice leads demand reduction, while supply and harm reduction are handled by the Ministries of Home Affairs, Finance, and Health.
  • National Mental Health Policy (NMHP) 2014 – It recognised the role of alcohol in mental illness and suicide prevention and suggested the need for a specific action plan.
  • National Health Policy (NHP) 2017 – It has mentioned curbing alcohol use through higher taxation.
  • National Suicide Prevention Strategy (NSPS) 2022 – It has identified alcohol as a major risk factor for suicides, advocating for a national alcohol control policy and measures to limit alcohol accessibility.
  • Non-communicable Diseases Control -National Action Plan and Monitoring Framework for Prevention and Control of Noncommunicable Diseases (NMAP) 2017-2022 also echoed the call for a national alcohol policy.

What needs to be done to address the issue?

  • Affordability - Alcohol pricing needs to deter excessive use without pushing the poor toward dangerous alternatives like illicit liquor.
  • Higher excise taxes, paired with strong enforcement against illicit trade, can reduce harmful consumption.
  • Allocation - Ear-marking these funds for public health, combined with transparent governance, can improve trust and accountability - and prevent corporate lobbying from redirecting them.
  • Accessibility - Alcohol access can be curbed beyond geographic distance and Urban policy must reduce availability in everyday spaces to signal a shift toward alcohol-free environments.
  • Advertisement - Regulating social media influence including algorithmic amplification - is key to reducing social appeal.
  • Attractiveness - Plain packaging, visible warning labels, and controls on point-of-sale promotion are needed to disrupt the cycle of normalisation.
  • Awareness - Public understanding of alcohol’s health harms - especially its link to cancer, mental illness, and generational poverty needs to be increased.
  • Artificial Intelligence - AItools can be used to detect and suppress alcohol-related content on digital platforms and flag misinformation.

References

The Hindu | Rethinking Alcohol Control in India

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