|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Economic and Social Effect of Prohibition of Liquor ban in Bihar |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Paper Id :
18965 Submission Date :
2024-06-07 Acceptance Date :
2024-06-15 Publication Date :
2024-06-25
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.12653183 For verification of this paper, please visit on
http://www.socialresearchfoundation.com/shinkhlala.php#8
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||
| Abstract |
Alcohol prohibition is in force a significant policy shift occurred in Bihar in 2016 under the leadership of Mr. Nitish Kumar, with elected state government of Bihar fulfilling its pre-election promise by implementing complete prohibition of liquor across the state. This milestone decision marked a notable departure from previous alcohol policies and signaled a strong commitment to addressing alcohol-related issues in Bihar. The prohibition aimed to reduce alcohol consumption and its associated social issues, but its broader impacts have been mixed. This study reviews the latest literature and analyzes recent data to assess the policy’s effectiveness, exploring changes in public health, crime rates, employment, and government revenue. The findings indicate that while there have been reductions in alcohol-related incidents; the policy has also led to significant economic challenges, including a rise in illicit liquor trade and loss of state revenue. |
||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Keywords | Bihar, Prohibition, Alcohol Ban, Economic Impact, Social Impact, Public Health, Crime Rates, Government Revenue. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Introduction | In April 2016, Bihar, one of India’s most populous states, implemented a comprehensive prohibition policy banning the manufacture, sale, and consumption of alcohol. The policy was introduced by the then Chief Minister Nitish Kumar, who argued that alcohol consumption was a major cause of poverty, domestic violence, and poor health, particularly affecting women and children. This initiative was part of a broader social reform agenda aimed at improving the quality of life for the state’s residents. Prohibition policies have a long and varied history, with mixed results in different contexts. In the United States, the prohibition era from 1920 to 1933 is often cited as a time when the ban on alcohol led to the rise of organized crime and illicit trade. Similarly, Bihar’s policy has faced both praise and criticism. Proponents argue that the policy has led to significant social benefits, including reductions in alcohol-related violence, improved public health, and enhanced family welfare. Critics, however, point to the substantial economic costs, including the loss of state revenue, increased unemployment in the alcohol industry, and the proliferation of an illegal liquor market. The policy has sparked considerable debate about the effectiveness of prohibition as a tool for social change. While some argue that the social benefits outweigh the economic costs, others believe that the unintended consequences, such as the rise of illicit liquor trade and methanol poisoning cases, undermine the policy’s objectives. Nitish Kumar hailed his government's decision as historic, emphasizing that it transcended mere financial considerations. He acknowledged the significant annual revenue loss of over Rs 4,000 crore resulting from the prohibition but underscored that the decision was not motivated by revenue concerns. Instead, Kumar highlighted the broader societal benefits, asserting that redirecting funds previously spent on liquor towards nutrition would contribute to improved health outcomes, disease prevention, and economic stability for the people of Bihar. This prioritization of public welfare over financial gains underscored the government's commitment to fostering holistic well-being and addressing the root causes of societal challenges. The government enforced strict regulations prohibiting hotels, bars, and clubs from serving alcoholic beverages, with the exception of army personnel, who have been temporarily exempted. Additionally, a ban on public consumption of toddy, a traditional alcoholic drink, was imposed. However, guidelines permitting the consumption of neera, a non-alcoholic drink derived from palm trees, were implemented, allowing its consumption before sunrise. It was noted that neera, if left beyond sunrise, ferments and becomes toddy, acquiring alcoholic properties. While the consumption of toddy itself was not banned, its open sale in rural marketplaces and other public places was prohibited under the new regulations. These measures reflect the government's efforts to regulate alcohol consumption while accommodating traditional practices and ensuring public safety. |
||||||||||||||||||||||||||||||||||||||||||||||||
| Objective of study |
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Review of Literature | Recent studies and reports provide a mixed view of the prohibition policy’s impacts in Bihar. Social Effects: Prasad and Sinha (2022), found that domestic violence cases decreased by 35% in the first two years following the prohibition, attributing this to reduced alcohol consumption among men. Kumar et al. (2023), there was a notable improvement in public health indicators, with a significant decrease in alcohol-related hospital admissions. Economic Effects: Jha (2021), highlighted the economic downsides, including a substantial decline in state revenue from alcohol taxes, estimated at approximately ₹5,000 crores annually. Mishra and Singh (2023), observed an increase in illicit liquor trade, which has led to additional enforcement costs and health hazards from unregulated alcohol. Crime and Enforcement: A report by the Bihar Police (2022) indicated an initial increase in smuggling and illegal alcohol production, with over 10,000 arrests related to these activities in the first year. Sharma & Roy (2023), Enforcement costs have escalated, straining state resources and diverting attention from other critical areas such as education and healthcare. |
||||||||||||||||||||||||||||||||||||||||||||||||
| Methodology | This study utilizes a mixed-methods approach, combining quantitative data analysis with qualitative insights from recent literature. Data from various sources, including government reports, health department statistics, and crime records, have been analyzed for the years 2016 to 2022. Statistical tools were used to identify trends and correlations, while literature reviews provided context and deeper understanding of the underlying issues. |
||||||||||||||||||||||||||||||||||||||||||||||||
| Analysis | The Prohibition of Liquor Policy in Bihar In April 2016, the state of Bihar, one of India’s most populous regions, embarked on an ambitious social reform by implementing a comprehensive prohibition policy that banned the manufacture, sale, and consumption of alcohol. The driving force behind this policy was the then Chief Minister Nitish Kumar, who, in response to widespread public demand and the pressing social issues associated with alcohol consumption, aimed to address the pervasive problems of poverty, domestic violence, and poor health. This prohibition was not merely a political maneuver but a bold step towards transforming the social fabric of Bihar, which had been grappling with the detrimental effects of alcohol abuse, particularly in rural areas and among economically weaker sections. The policy’s inception was significantly influenced by the vocal advocacy of women in Bihar, who highlighted the severe impact of alcohol on family life. These women argued that alcohol consumption by men led to domestic violence, financial instability, and health issues, which disproportionately affected women and children. The prohibition was thus framed as a measure to protect and uplift the most vulnerable sections of society, promising a reduction in domestic violence and an improvement in public health and family welfare. Prohibition policies have a varied history across the world, often yielding mixed results. For instance, the United States experienced the prohibition era from 1920 to 1933, which, while reducing alcohol consumption initially, also led to the rise of organized crime and a thriving black market for alcohol. Similarly, Bihar’s prohibition policy has been a subject of intense debate and scrutiny. Supporters of the policy point to the notable social benefits, such as reductions in alcohol-related violence and health issues, which have contributed to improved family and community well-being. However, critics highlight the significant economic drawbacks, including the loss of state revenue from alcohol taxes, increased unemployment in industries related to alcohol production and distribution, and the emergence of a lucrative illegal liquor market. The economic ramifications of prohibition have been profound. Bihar, which previously garnered substantial revenue from alcohol taxes, faced a significant financial shortfall post-prohibition. This loss of revenue has had cascading effects on the state’s ability to fund essential services and development projects. Furthermore, the prohibition has led to a rise in the production and distribution of illicit liquor, which poses severe health risks and challenges for law enforcement. The illegal liquor trade has not only filled the economic void left by the ban but also introduced new public health hazards, such as methanol poisoning, which have further strained the state’s healthcare resources. Enforcement of the prohibition policy has also been a considerable challenge. The initial period following the ban saw a surge in smuggling and illegal alcohol production, with law enforcement agencies making thousands of arrests related to these activities. The increased burden on the police and judicial system has diverted resources from other critical areas, exacerbating existing challenges in the state’s law enforcement and public administration. The policy’s enforcement has required significant financial and human resources, raising questions about its sustainability and the long-term commitment required to maintain its intended benefits. The Policy Paradigm The Government of Bihar introduced a phased prohibition policy starting on April 1, 2016, initially banning the sale and consumption of country-made and spiced liquor. This move was swiftly followed by a more comprehensive prohibition on April 5, 2016, which extended the ban to include both Indian-made foreign liquor and country liquor, effectively implementing a blanket ban across the state. The original act faced criticism for its stringent measures, prompting the government to introduce the Bihar Prohibition and Excise Act 2016. This new act, which came into effect on October 2, 2016, replaced the earlier Bihar Excise (Amendment) Act, 2016. The Bihar Prohibition and Excise Act 2016 strictly prohibits the sale, purchase, and consumption of liquor within the state. The following table presents key indicators from 2016 to 2022, illustrating the impact of prohibition on public health, crime, and state revenue. Table 1: Impact of prohibition on public health, crime, and state revenue
Sources: Bihar Health Department Reports (2016-2022), National Crime Records Bureau (NCRB), Bihar State Financial Reports (2016), Bihar Police Department Annual Reports (2016-2022) The data presented in the table is compiled from various governmental and non-governmental sources. Each source is specifically referenced to ensure the accuracy and reliability of the information. By integrating data from these sources, the table provides a comprehensive view of the impacts of prohibition in Bihar from 2016 to 2022. Salient Points The Bihar Prohibition and Excise Act, 2016 enforces a complete ban on the sale, purchase, or consumption of liquor and intoxicants. It prohibits the manufacturing of any form of liquor or intoxicants and prohibits the establishment of breweries or distilleries without proper licensing. The Act mandates the appointment of an Excise Commissioner and Excise Officers to oversee its implementation, with the collector responsible for facilitating prohibition efforts and administering the Act within their jurisdiction. Under the Act, the government is obligated to establish de-addiction centers to provide medical treatment or counseling for individuals engaged in or at risk of alcohol consumption. Strict penalties are imposed on those involved in the unlawful import, export, transportation, manufacturing, sale, or consumption of liquor, including individuals and companies alike. Even tampering with denatured spirit or mixing harmful substances with liquor incurs penalties. The Act authorizes the collector to impose collective fines on villages, towns, or localities found to be habitual offenders or obstructing the Act’s provisions. Violations of the Act are met with severe penalties, such as the death penalty for manufacturers and suppliers of illicit liquor resulting in death. Public drinking can lead to imprisonment and hefty fines, while creating disturbances at home while intoxicated may result in lengthy prison sentences. Reports indicate the rigorous enforcement of the Act, with the Bihar government accused of destroying large quantities of alcoholic beverages and implementing preventive measures against cross-border liquor smuggling. The government’s commitment to enforcing the Act is underscored by its efforts to encourage citizens to report instances of drinking and nuisance through a dedicated toll-free number prominently displayed across the city. Awareness Program on Alcohol Prohibition and Bihar Excise (Amendment) Act 2016 On May 11, 2016, an awareness program concerning Alcohol Prohibition and the Bihar Excise Amendment Act 2016 took place at the Rajendra Stadium in Saran. More than 10,000 members of the Jeevika Self Help Groups from Saran, Gopalganj, and Siwan districts participated in this event. The program was inaugurated by the Honorable Chief Minister of Bihar, Sri Nitish Kumar, who ceremoniously lit the lamp to commence the proceedings. During the event, several Jeevika self-help group members, including Sunita Devi from Saran, Kiran Devi from Siwan, and Poonam and Vedanti Devi from Gopalganj, shared their successful experiences in achieving alcohol-free villages. Additionally, members of the self-help groups presented a song highlighting the importance of prohibition. Addressing the gathered community members, Chief Minister Nitish Kumar extended his congratulations for the successful implementation of the liquor ban across the state. He assured the community of his full support in their endeavors towards maintaining the prohibition. The program was attended by numerous distinguished guests, including Dr. Ashok Choudhary, the Education Minister; Sri Chandrika Rai, the Transport Minister; Sri Shivchandra Ram, the Art and Culture Minister; and Muneshwar Choudhary, the Mines Minister. High-ranking officials such as the Chief Secretary of Bihar, the Development Commissioner of Bihar, the Principal Secretary of Education, and the Secretary of Rural Development Department (RDD) were also present. Additionally, the event saw participation from the CEO of Jeevika, the Commissioner of Saran, as well as the District Magistrates (DMs) and Superintendents of Police (SPs) from all three districts within the Saran division. Reasons for Total Prohibition 1.Youth Addiction Prevention: Prohibition of alcohol serves as a preventive measure against the addiction of youth. Alcohol addiction can have devastating consequences, affecting not only individuals but also their jobs, relationships with friends and family, and their overall well-being. 2.Health Concerns: Large quantities of alcohol consumption can severely damage vital organs such as the kidneys and liver, potentially leading to fatal outcomes. Prohibition aims to mitigate these health risks associated with excessive alcohol consumption. 3.Crime Reduction: There exists a clear link between alcohol consumption and an increase in criminal activities. Intoxicated individuals are more likely to engage in violent crimes, assault, and disorderly conduct. Prohibition seeks to reduce such criminal behavior by limiting access to alcohol. 4.Prevention of Drunk Driving: Prohibition helps in minimizing casualties and damages caused by drunk driving incidents. By restricting access to alcohol, the likelihood of individuals driving under the influence is significantly reduced, thereby enhancing road safety. 5.Financial Burden: Alcohol consumption can impose a significant financial burden on individuals due to its expensive nature. Prohibition addresses this concern by eliminating the need to spend large sums of money on alcohol-related expenses. 6.Religious Considerations: Certain religions, including Islam, Mormonism, and some Pentecostal Christian denominations, strictly prohibit the consumption of alcohol. Prohibition aligns with the religious beliefs of these communities, fostering adherence to their principles and values. Reasons against Prohibition 1.Economic Impact: Prohibiting alcohol can result in a loss of tax revenue and legitimate employment opportunities. The alcohol industry contributes significantly to the economy through taxes and employment, and prohibition may disrupt this economic flow. 2.Black Markets: Despite prohibition, people determined to consume alcohol may resort to underground or black-market sources. This may lead to increased illegal activities and the proliferation of unregulated alcohol, posing risks to consumers. 3.Freedom of Choice: Prohibition restricts individuals’ freedom to choose whether to consume alcohol or not. It infringes on personal liberties and removes the autonomy of individuals to make decisions about their own behavior. Additionally, alcohol addiction is often viewed as a personal issue that primarily affects the individual, rather than infringing directly on the rights of others. 4.Safety Concerns: One of the major issues with alcohol prohibition is the potential rise in unregulated and uninspected alcohol production, which can pose significant health and safety risks to consumers. Without the oversight and quality control measures provided by government regulations, the market becomes susceptible to the circulation of adulterated or contaminated alcohol. This unregulated alcohol can contain harmful substances that are hazardous to health, leading to severe medical emergencies and, in some cases, fatalities. The absence of stringent inspections increases the likelihood of these dangerous products reaching consumers, thereby putting public health at considerable risk. Ensuring safety and maintaining health standards become a challenge when alcohol production is driven underground, highlighting the critical need for regulated oversight to prevent such risks. 5.Promotion of Organized Crime: Prohibition creates opportunities for organized crime to thrive, as criminal groups may exploit the demand for alcohol by supplying it through illicit channels. This not only fosters illegal activities but also strengthens criminal organizations, perpetuating a cycle of crime and violence. 6.Social Acceptance: In many cultures and religions, social drinking is a socially accepted practice. Prohibition may infringe upon cultural norms and traditions, leading to social tensions and conflicts. Moreover, alcohol consumption is often intertwined with social gatherings and rituals, making it an integral part of societal interactions for many communities. |
||||||||||||||||||||||||||||||||||||||||||||||||
| Conclusion |
Bihar joins the ranks of Gujarat, Nagaland, and Mizoram as the fourth state to enforce a complete ban on alcohol. Chief Minister Nitish Kumar hailed his government's decision as a historic milestone, emphasizing its significance in addressing societal challenges associated with alcohol consumption. In conclusion, the debate surrounding alcohol prohibition is multifaceted, with valid arguments presented on both sides. While proponents advocate for prohibition as a means to address social and health concerns associated with alcohol consumption, opponents raise significant concerns about its economic, social, and individual liberty implications. Finding a balance between addressing the harms of alcohol abuse and respecting personal freedoms remains a complex challenge for policymakers. Ultimately, any decision regarding alcohol prohibition must carefully consider its potential impacts on public health, the economy, individual liberties, and social norms. It is imperative that policymakers engage in informed discussions and consider evidence-based approaches to address alcohol-related issues while upholding the principles of democracy, personal autonomy, and societal well-being. |
||||||||||||||||||||||||||||||||||||||||||||||||
| References |
|
||||||||||||||||||||||||||||||||||||||||||||||||
