In Kerala, bars have reopened, selling only beer and wine for now.

Thiruvananthapuram: Kerala’s liquor bars reopened on Monday, though only beer and wine will be sold for now. They have closed nearly a week ago, shortly after the latest Covid unlock began, in protest of a hike in warehouse charges by the Beverages Corporation, or Bevco, the State’s wholesale liquor seller.

On Monday, bar owners declared that no liquor will be sold in their establishments until their demands are met. Beer is an exception because it cannot be sold after its expiration date.
V Sunil Kumar, president of the Federation of Kerala Hotels Associations, stated that private bars could resume parcel service only if the government made a favourable decision.

Consumerfed’s more than 800 bars and 40 liquor outlets in Kerala shut down operations this month, citing financial losses. As Bevco increased its warehouse rate and slashed retailers’ profit margins, the outlets became ill.

Bevco increased the warehouse charge for bars from 8% to 25% and for Consumerfed from 8% to 20%. Bevco justified the increase by claiming that it was required to make up for the loss it suffered during the COVID lockdowns. Following the move, the bars and Consumerfed liquor outlets decided to close their doors on June 21, three days after the state’s liquor sales resumed.

After Bevco increased its warehouse rate, the profit margin of retail outlets fell to 3% from 20%. According to the revised Bevco rate, private bar owners will lose Rs 9,000 when selling liquor worth Rs 1 lakh.