The liquor trade in Kerala has always remained politically directed with little or no choice for consumers. Political decisions have shaped the trade for several decades. Business can thrive only when entrepreneurs are free to decide what benefits them most. When politicians decide how a business should be run, the entire decision making of the entrepreneur will be based on faulty premises and greater uncertainties. Moreover, when the government decides to run business on the entrepreneur’s behalf it creates a whole new problem of mismanagement and inefficiency. Kerala’s latest decision to introduce foreign liquor through government held BEVCO outlets should be seen in this context.
To know more read CPPR Research Consultant, Rahul V Kumar’s opinion piece on this policy decision, published by Azhimukham. Here is the link: Foreign Liquor in Kerala: A Story of Deceit?
Rahul V Kumar is a Research Fellow at CPPR. He has an MA in Economics and an MPhil in Applied Economics and International Relations from Jawaharlal Nehru University (New Delhi). Currently, he teaches graduate students.