ISWAI shared concerns faced by the alcobev industry

New Delhi/Jaipur : At the ‘PAFI Dialogue’ organized by Public Affairs Forum of India (PAFI), Dr. Arvind Mayaram, Economic Advisor, Government of Rajasthan; Vice Chairperson, Rajasthan Economic Transformation Advisory Council and Former Finance Secretary, Government of India said “The bigger structural reform we are looking at is how to reduce the number of compliance from 65 at present to not more than 15-20; Since many of them are not necessary or obsolete or can be moved to self-certification or third-party certification.”  The theme of the ‘PAFI Dialogue’ was “Pleasure of doing business with States – Rajasthan”.

Explaining further the improvement in Rajasthan’s ease of doing business scenario, Dr. Mayaram said, “We have set up a single window system where all the concerned departments and relevant officers would sit together and provide all the required clearances.”

Dr. Mayaram elaborated the nine focus areas for economic transformation in the state, namely, managing urban economic sector, sustainable agriculture, integrated agribusiness, improving hospitality, education and medical facilities besides encouraging public-private partnership and better fiscal management.

Expressing concern on inflationary pressure on the alcobev sector, Ms. Nita Kapoor, Chief Executive Officer, International Spirits & Wines Association of India (ISWAI) said the alcobev industry was facing serious challenges despite contributing 42 percent to the Rajasthan’s State revenue. “The challenge the industry is facing is how to sustain our operations in the state under runaway inflation. The cost of every direct input material and service has shot up.”

Ms Kapoor asked for inflation adjustment in the supplier prices and for allowing liquor in hotels with less than 20 room capacity, which she said would help the tourism industry and the alcobev industry to recover from the huge losses it incurred during the Covid-19 led pandemic. An interim solution to supplier sustainability could be that instead of collecting 100% excise duty upfront from suppliers, 30% duty could be collected upfront, thereby partly easing their working capital pressures, with retailers paying 100% duty as is the case currently.

Dr. Mayaram asked industry to take up their issues and concerns at the appropriate level in line with the larger policy of the state government.