• Education empowers the poor
  • Spreading smiles
  • The poor need opportunities
“We  shall  not  look  at  caste  or  religion,  All  human  beings in  this land  whether  they be those who preach the  vedas  or  who  belong  to  other  castes  are  one”



Blog

06 Apr

LIQUOR BAN NEED NOT LEAD TO LOSS OF INCOME FOR GOVERNMENT & LOSS OF JOBS

Image

LIQUOR BAN NEED NOT LEAD TO LOSS OF INCOME

FOR GOVERNMENT & LOSS OF JOBS

The Supreme Court order banning the liquor shops within 500 metres of  highways has been criticized by liquor producers, merchants and liquor addicts all over India. Claims are made that such closure will lead to loss of millions of jobs all over India and huge loss of income for the government. These are exaggerated fears and misgivings.

Supreme Court  has ordered the closure of liquor shops  within 500 metres of  highways, since the drunken men driving the vehicles cause accidents leading to injuries to people and loss of innocent lives. Supreme Court has  not ordered the closure of all the liquor shops in the country but only those that are located within 500 metres of  highways.

Supreme Court order make sense

While the reason extended by Supreme Court order makes sense,  there are even more justifiable reasons for applying liquor ban such as lakhs of men belonging to poor families becoming liquor addicts causing untold sufferings  for the women in the families , leading to broken homes and uprooting the economic well being and the life of children. The recent trend of women also succumbing to liquor habits is causing alarm.

There are many persons who think that Supreme Court should have gone a step further and banned all the liquor shops all over India, considering the harm that is being done to the fibre and fabric of the society.

State governments should adopt positive approach

To circumvent the order of the Supreme Court , several state governments are now said to be taking steps to denotify the state highways within cities and towns and turning them into urban roads,  so that the Supreme Court order would not be applicable to them.  This is a negative approach.

The state governments should react to the Supreme Court  judgement  positively, considering the enormous social evils that happen due to the rapid spread of liquor habit amongst people and particularly the youth. State governments should examine as to how they should deal  with the matter in a proactive way and implement the Supreme Court order, without causing much loss of income and job opportunities.

There are elegant ways of doing this.

 Value added products from molasses

Molasses is the mother liquor left after the crystallization of cane sugar from the concentrated sugar in the production process of sugar.

Molasses is an important building block from which several value added  products can be produced, amongst which ethanol is one.

There are several molasses and ethanol based products which are not produced in India and are presently being imported in large quantities in the country.

Considering the demand supply scenario and projected growth in demand for such products  in view of the high relevance of the products to the Indian and industrial economic growth pattern of the country, there are excellent investment opportunities for setting up downstream products from cane molasses and ethanol.

Setting up such projects would lead to investment, economic growth, direct and indirect job opportunities in multiple ways as well as income for government by way of taxes and duties.

Indian import / export / production of selected molasses / ethanol derivative products with high demand potential are highlighted below:.

Period : April 2015 to March 2016


Derivative product

Feed stock

Indian import in tonne

Indian export in tonne

Indian production

Acetic acid

Ethanol

712,384

Small quantity

160,000 tonne

Butanol

Ethanol

62,511

194

7000 tonne

Butyl acetate

Ethanol

56070

10

6000 tonne

Citric acid

Molasses

75,978

Nil

Nil

Ethanol
(ethyl alcohol)

Molasses

450 million litres

140 million litres

2,085 million litres

Ethyl acetate

Ethanol

289

104821

360400 tonne

L-Lysine and its salts

Molasses

40189

852

1000 tonne

Lactic acid



Molasses

3518

2.5

1000 tonne


Polylactic acid


Small quantity


Nil

Emerging bio degradable plastic , with high demand potential

Polyvinyl chloride

Ethanol

1501311

3054

1438000 tonne


Investment opportunity in Tamil Nadu – A case study

Tamil Nadu is one of the leading states for number of liquor addicts and sale of liquor, which has happened   due to the policy of Tamil Nadu government to sell the liquor through their government owned Tasmac shops and in  the process giving legitimacy to this bad trend.

Tamil Nadu had 6672 TASMAC liquor shops in 2016,  which was reduced to 5672 shops  due to public protests. Now, after the Supreme Court order , 3321 shops are likely to be closed. This would make large quantity of alcohol available for setting up alcohol based downstream products. Several molasses based projects can also be set up.

There are 27 private , 16 cooperative and 3 public sector sugar mills in Tamil Nadu, which produce cane molasses apart from sugar. . In Tamil Nadu, there are around 3,30,000 hectares of area under sugarcane cultivation and production of sugarcane is around 22 million tonne per annum in a normal year when irrigation is adequately available.

Recent production trend of molasses / ethanol in Tamil Nadu is given below:


Period (April to March)

Molasses production
in lakh tonne

Ethanol production
from molasses

In lakh litres

2010-11

9.99

2119.43

2011-12

11.85

2301.72

2012-13

10.39

2288.69

2013-14

7.44

1765.52

2014-15

7.07

1595.40


Potential investment based on several molasses /ethanol  based projects in Tamil Nadu alone  could well be over Rs.3,000 crore.

When in operation, such projects can generate substantial income to the state by way of taxes and duties.Such projects would also promote all round growth and generate employment at skilled and unskilled level. Such projects would also pave way for setting up many ancillary units.

It will take around one year or so to implement such projects in a planned manner. Construction activity itself will spur considerable industrial and economic activity in the state.

The economic and social advantages of setting up such molasses/ ethanol  based projects in Tamil Nadu should be well appreciated. Then, there  would be  no need to lose sleep over the Supreme Court decision to ban liquor outlet in highways.

******

Comments

There are 0 comments in this project

Leave a Reply

Your email address will not be published.