THIRUVANANTHAPURAM: CPM Kerala State Secretary M.V. Govindan on Friday defended the previous Left Democratic Front (LDF) government’s policy on low-alcohol beverages, insisting that its objective was to promote value-added products from locally available agricultural produce and not to encourage liquor consumption or offer tax concessions.
Addressing the media, M.V. Govindan said the LDF had proposed manufacturing low-alcohol beverages using agricultural produce such as cashew apples, which are abundant in Kerala’s Malabar region but often go to waste because of poor market demand. Inspired by Goa’s cashew-based liquor, Feni, the initiative was aimed at creating additional income for farmers and cooperative societies by making productive use of surplus agricultural produce, he said.
Clarifying the government’s position, Govindan said that while serving as Excise Minister in 2021, he had only sought a detailed report defining what constituted “low-alcohol liquor” after receiving applications from companies, including SDF International, and representations from cooperative organisations. He said seeking a technical definition could not be interpreted as support for reducing excise duty or promoting liquor sales.
According to Govindan, the proposal was referred to the Kerala Assembly Subject Committee in 2022 after he had ceased to be Excise Minister. The committee, comprising members from both the ruling and opposition parties, examined and approved the proposal before it was notified through the Gazette in 2023. However, he maintained that the LDF government never took any decision to permit the sale of low-alcohol beverages or reduce taxes on them during its tenure.
Launching a sharp attack on the UDF government led by Chief Minister V.D. Satheesan, M.V. Govindan alleged that the file reached the Chief Minister within three days of the new government assuming office. Within 24 days, he said, the State Budget proposed reducing the excise duty on low-alcohol beverages to 120 per cent.
He claimed the move would result in an annual revenue loss of around ₹600 crore and alleged that the decision was taken without discussion within either the UDF or the Congress leadership. Govindan further accused the government of attempting to shift responsibility for the controversial proposal onto the previous LDF administration while extending undue benefits to private companies.
