VIJAYAWADA: Like many businesses in the city and the district, the liquor business too is facing the impact of demonetisation.
Liquor and beer sales have been plummeting gradually as the alcoholics and the traders have run out of cash in smaller denomination notes. The wine shops, which are usually flocked by scores of customers, are now left with not much activity.
Lack of sales is also forcing the traders into financial crisis as they need to purchase the mandatory amount of fresh stock daily equivalent to the purchase made on the corresponding day of last year from the government depots.
According to Excise officials, sales came down by at least 20 per cent in the city and 30 per cent in the district. The city alone witnesses a minimum sale worth Rs. 1.5 crore per day normally.
While the licence holders who are unable to exchange cash have stopped accepting old notes, several others have made purchase of particular amount worth liquor mandatory with the notes. If paying a Rs. 500 note, one has to purchase at least Rs. 300 worth liquor or spend the whole by taking combo offers.
“We have accepted the old notes till today but will stop from tomorrow. Only on purchases of branded stock worth thousands we will accept them. We ran out of 100s and it is impossible to run the business without them,” said S. Siva Rama Krishna, owner of a bar and restaurant.
Black money flow
On the other hand, the black money hoarders among the liquor barons are turning this crisis into an opportunity to convert black into white. Some of the them are purchasing the maximum amount of stocks from the government which is contrary to the poor sales.
“It is a trick being played by some traders. One can purchase any amount of stock from the depot but not less than the amount bought same day last year. That way they convert money into liquor and beer which can be sold later in many ways. Indulging in such practice may put them out of black money issue temporarily but there will be a watch over the spending by the government which seeks source of the cash generated from other than previous day’s sale,” said a manager of a chain of bars and wine shops in the city.
Machilipatnam Superintendent of Excise and Prohibition department M. Manohar said, “Sales at the retail outlets came down but it seems purchasing at depots increased drastically.” All the liquor outlets in the district allegedly sell stock far above the MRP.
