As part of the state government's plan to turn the state dry, the bars that had taken the government to the court were supposed to lose their licenses starting tomorrow. The SC directed the Kerala High Court to take a final call and deliver its verdict by the end of this month. Chief Minister Oommen Chandy said last month that booze can be served only in five star hotels , which too have to go dry on Sundays to give shape to his dream of turning the state dry in the next 10 years.
The government planned that state-run liquor stores will be phased out at a rate of ten percent a year for the next decade. This would leave a big hole in the state coffers after alcohol taxes and fees generated more than $1 billion or 6,000 crores in the 2012-13 financial year. That apart, this will also hit the tourism sector in the state. Top Travel advisors surveyed that out of 5000 Indians, 58% have chosen to change their destination to the nearby places like Goa and Sri Lanka.
Reports further suggest that liquor was sold at a price 35% more than last year during Onam as demand had shot up as people were stocking them at home before the ban.