UDF announces subcommittee to formulate liquor policy for 2026-27 fiscal year
The UDF government in Kerala has formed a subcommittee to draft the 2026-27 liquor policy, aiming to balance fiscal revenue needs with social and religious sensitivities. The government is considering low-proof alcohol options to boost revenue while avoiding further fuel tax hikes.
Why it matters
Liquor policy is a major source of state revenue in India, often creating significant friction between economic necessity and social/religious advocacy groups.
The ruling United Democratic Front (UDF) has announced a subcommittee to formulate the new government’s liquor policy for the 2026-27 fiscal year, including whether to allow the production and sale of low-proof liquor. UDF convener Adoor Prakash told a press conference on Thursday that the government would involve all stakeholders to arrive at a consensus before finalising the policy.
The UDF seems poised to walk a tightrope between the State’s fiscal exigencies and the social and political sensitivities surrounding the production of relatively low-strength alcohol from fruit, and also the sale of popular alcopops, fruit-flavoured, ready-to-drink canned sodas containing a minimal quantity of alcohol. According to sources, the UDF subcommittee has to factor in that the independent revenue of provincial governments, including Kerala, comes mainly from liquor and fuel taxes, with the nationwide goods and services tax (GST) supplanting a range of State levies.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in