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Should an entrepreneur in Kerala be worried about the state liquor policy?

by Rajesh Nair

I don’t drink alcohol and cannot comment on its taste, the kick and the silent joys of inebriation. I do not understand politics as I have never thought and delved on it besides regularly casting a vote during elections based on my understanding of the capability of the local candidate. I do not know about the hundreds of families around the world, not just in Kerala, who suffer due to the abuse of alcohol – my hearts truly go out to those families whose lives are in ruin because of it. I do not know   whether the drinkers in Kerala today will stop drinking, if alcohol is made less available. I do not know whether closing down bars will affect consumption at all.

What I can comment on is what it may do to the business ecosystem in Kerala. Kerala Tourism has reached a pedestal of sorts, a ’pride of place’  not just through benign policies but through the relentless efforts of entrepreneurs who dared to defy many hurdles. Many a tourist say that  God has been unfairly partial to Kerala by  bestowing it with such splendour and natural beauty. The nascent whiff in the air when the first drops of rain hit the fiery ground is incomparable and perhaps there are very few places where one can see so many shades of green in the landscape. It is also true when senior statesman say ‘But, nobody comes to Kerala to drink!’… In Western cultures and increasingly in the Eastern culture, a glass of wine and a swig of whisky is more of a hygiene factor – something which is part of the regular rigmarole. When you hear that – ‘Sorry, liquor is not served here!’, it is more of an irritant than anything else. The immense potential of corporate conferences and vacations now has a question mark as a clear option of camaraderie and fellowship is restricted. And people will not take kindly when restriction is festooned on them.

For a state which has seen an amazing three years in entrepreneurship promotion, this does not augur well. It tells the business observers that policies are fluid here and draconian laws could bea  reality any moment. A potential investor will think and go back to his or her drawing table to write down a new business risk in doing business in Kerala. They will re –question their intention of doing business in Kerala, an environment where, the most positive government in recent times, can also take such measures.

I am not an economist; I don’t know what will be the impact on the state exchequer. A quick ‘back of the envelope calculation’ says that while manufacturing creates a great ripple effect in the economy, tourism has the propensity to quickly open avenues of self-employment and burgeon small scale, low investment  entrepreneurship. They will get affected in the short term.  Will a lot of families benefit by this? Will happy days come back to their lives? I pray …

But right now, I see a lot of entrepreneurs around me nodding and not positively …