The shares of two liquor companies plunged on the BSE after Bihar Chief Minister Nitish Kumar made an official announcement of imposing a liquor ban in the state from April 1, 2016. He has done so after he had promised a group of angry women about the same, at an event in July.
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However, it is not clear whether such a ban will cover all kinds of liquor or only country liquor.
He said the poorest of the poor had been consuming liquor, badly hitting their families and their children’s education.
Speaking to CNBC-TV18, Ajay Alok, JDU Spokesperson says the five months time is sufficient for formulation of a strategy to discourage illegal liquor trade.
“Increasing liquor consumption was also a major cause for domestic violence, particularly against women, and had contributed to a rise in crimes”. Prohibition has been in place in Gujarat since 1960. Women specially from Dalit and backward castes have been on the forefront of protests.
Nitish said government is formulating policies and laws to ban iquor in the state from April 1, 2016.
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“More than the obvious financial impact, this is a directional negative if rest of the state governments emulate Bihar and Kerala, in our view”, analysts at brokerage house Motilal Oswal said.
