United Spirits, Radico Khaitan Slump as Bihar Braces for Alcohol Ban

Bihar CM Nitish Kumar announced the liquor ban with effect from April 1, 2016 which is going to cost the state a heavy revenue loss.

Shares of Diageo-owned United Spirits fell 4.63 per cent to ₹3,215 while that of Delhi-based Radico Khaitan dropped 8.45 per cent to ₹114. He had particularly appealed to the state’s rural women voters, promising a swift ban if he was voted back to power as chief minister for the fifth time. The pro-prohibitionists claim that the law and order situation will also improve as many crimes take place after men get drunk. Prohibition has been in place in Gujarat since 1960 and also in Nagaland, Manipur and Lakshwadeep. Hundreds of bars were forced to shut down across the state, and alcohol is now served only in five-star hotels.

Bihar has one of the largest populations in India, meaning up to 100 million people could be affected by the ban, which will be one of the world’s most far-reaching. “Since chief minister Nitish Kumar has made a promise to enforce a liquor ban in the run-up to the Assembly elections, we are bound to fulfil it. It’s a matter of pleasure that the pre-election promise is being fulfilled soon after the formation of the new government”. Country liquor as well as foreign liquor should be part of this ban, ” tweeted Sushil Kumar Modi, senior BJP leader who was deputy chief minister till Nitish snapped ties with the party in 2013.

The Bihar government earned almost Rs. 3,500 crore past year through taxes on the sale of alcohol, sources say.