The Left Democratic Front (LDF) government in Kerala appears to have walked a tightrope between the hospitality industry’s imperatives and the political risk of dismantling Church and Muslim social organisations-backed temperance shibboleths such as the first-of-the-month dry days while finalising Kerala’s liquor policy for the 2025-26 fiscal year.
Recognising that liquor policy is a politically and socially sensitive topic often characterised by pro-prohibition movements in Kerala, the government on Wednesday (April 9, 2025) decided against reducing the number of dry days in the State this financial year.
Top officials told The Hindu that intelligence reports suggesting that bar and hotel owners’ associations were raising funds from their members for a more liberal liquor policy also informed the government’s decision to pre-empt a politically disadvantageous corruption controversy over slashing of dry days in the run-up to the local body elections in 2025.
No slump in liquor sales
Moreover, officials said the government saw no slump in liquor sales despite Kerala’s relatively high number of dry days.
However, limiting the hoarding of liquor for illicit retail on dry days and the possibility of spurious liquor entering the black market remained a grave Excise enforcement challenge.
The government also appeared keen not to provoke Church and Muslim social organisations-backed anti-liquor policy temperance movements ahead of the Assembly elections in 2026.
Balancing act
However, the government has attempted to balance the demands of the tourism industry by allowing four- and five-star hotels to serve liquor at events, including meetings, conferences and exhibitions, on dry days.
Nevertheless, the establishment must seek a one-day permit for serving liquor at a designated point. The temporary licence prohibits serving liquor at bars or in rooms.
The government also decided against reducing the mandatory 400m minimum set-off distance between liquor outlets, educational institutions, and religious places of worship.
Cruise ship permit
The new liquor policy permits luxury cruise vessels, such as the Kerala Shipping and Inland Navigation Corporation’s (KSINC) Neferritti, which operates in Kochi, to serve liquor onboard for tourists on leisure trips.
The government reiterated its earlier decision to allow legal alcohol in IT parks to assuage the software industry’s longstanding grievance that the lack of high-spirited socialising venues made Kerala a disappointing job destination for techies.
However, the rider that the amenities operate like highly restrictive private members’ clubs, with the licensee being the CEO of an IT firm and entry limited to IT park employees, has reportedly dampened the initiative. The bar lobby had also objected to the government from operating clubs inside IT park premises, fearing loss of business.
Toddy sector promotion
The new liquor policy also promotes the toddy sector. The government has reportedly allowed the private sector to bottle and export toddy. It has also reportedly increased the quantity of toddy that tappers can legally extract from coconut palms.
It has also reiterated that dry days would not apply to toddy shops despite demand from some social groups.
Despite the concerns raised by toddy tappers’ associations, particularly the one affiliated to the All India Trade Union Congress (AITUC), the government has permitted the production of wine and low-proof liquor from local produce, including grains and fruits. The AITUC expressed apprehensions that an increase in wineries and breweries could negatively impact Kerala’s toddy sector.
Wineries and breweries
Officials said the number of takers for starting breweries and wineries was limited.
The government has sanctioned a winery permit to a private player in Kasaragod district and the Kerala Agricultural University in Thrissur district.
Published - April 10, 2025 11:58 am IST
