Kerala may amend excise laws to boost export of foreign liquor produced in the state

By Aishwarya Nair  |  First Published Feb 7, 2024, 11:05 AM IST

An expert committee appointed by the Kerala government suggested that the excise rules should be comprehensively revised for the export of foreign liquor produced in the state.


Thiruvananthapuram: An expert committee appointed by the Kerala government suggested that the excise rules should be comprehensively revised for the export of foreign liquor produced in the state. The report was given by the committee under the leadership of KSIDC MD Hari Kishore to conduct a study to promote liquor exports. The committee also recommended that the distillery license should not be made mandatory for industrialists interested in collaborating with liquor manufacturers in the state.

The primary goal will be to fully capitalise on the increasing demand from other states for Kerala's foreign liquor brands.

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An important proposal in the last liquor policy was to promote the export of liquor produced in the state. As many as nine proposals have been submitted to the government. The first recommendation is that there is no need for a license to export foreign liquor. There is no need for a special permit as Excise checks all aspects while issuing the export license. At present 17 distilleries are functioning. The rule is that if an out-of-state investor comes in to produce liquor in conjunction with these producers, they must have a distillery license. If this requirement is waived, it is possible to sign an agreement with anyone and increase the production of alcohol.

For international trade shows and road shows, the quantity of alcohol that can be taken abroad should be increased from 10 litres to 20 litres per month.
It is necessary to alter the label registration on bottles. Under the existing system, any label modification requires the payment of a certain price to gain excise approval. The labelling strategy is up to the manufacturer. Callous or anti-national statements are not appropriate.

There should be no charges for export liquor label approval, brand registration, or export pass. All cars should have GPS, rather than excise guards accompanying vehicles delivering additional neutral alcohol to distilleries. This can avoid the expense of hiring escort guards.

The government will take a final decision after studying the recommendations that have far-reaching implications, including the amendment of rules to allow unlicensed investors to participate in liquor production. 

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