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CIABC Urges Chhattisgarh State Marketing Corporation for a transparent and fair ordering system to ensure Chhattisgarh consumer demands are met

Starting April 1, 2017, the Chhattisgarh Government revised its route-to-market structure for the sale of alcohol wherein it set up the Chhattisgarh State Marketing Corporation to operate the alcohol retail outlets. With this new structure, Chhattisgarh State Marketing Corporation (CSMC) has taken over supply of 712 Indian Made Foreign Liquor and country liquor shops across the state.

This change has created an artificial shortage in supply and procurement of well-known national brands and consumer demands for national brands being suppressed since the last 8 months. Unfortunately, the people of Chhattisgarh are experiencing a huge shortage of these well- known national brands since the change in route to market in April 2017, wherein Chhattisgarh State Marketing Corporation (CSMC) took over alcohol retail operations in the State.

Although manufacturers are supplying these brands to the depots, the brands are not available in retail stores, thereby creating an artificial shortage for consumers. Consumers of these highly popular national brands continue to enjoy them in all other states, only here in Chhattisgarh, they are not available to fulfill demand.  On the contrary, unknown brands from local bottlers, are suddenly visible and being pushed at the retail stores.

Due to the artificially induced short supply of nationally well-known brands, there is a huge risk of counterfeit and illicit alcohol coming into the state which causes a big risk to public health and safety in Chhattisgarh. Furthermore, since these national brands are popular and available in other states, there are high chances of cross border smuggling of alcohol products, which leads to an increase in crime rates and is a loss of revenue to the Chhattisgarh Government.

CIABC lauds the progressive state policies by Chhattisgarh Government resulting in the state being ranked Fourth among the states and union territories of India, for Ease of Doing Business, by DIPP and World Bank.

During a meeting with the local city media Mr. Pramod Krishna, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC) said, “We urge the government to address this issue faced by the national alcohol industry, in the interest of consumers. Business and government both flourish in a sustainable way only when consumers and citizens do. We want the residents of Chhattisgarh to enjoy the well-known national brands that they love in the same way that consumers in all other states are doing. We urge the CSMC to put in a transparent and fair ordering system for retail outlets.”

About Confederation of Indian Alcoholic Beverage Companies (CIABC)

CIABC is the apex body of the national branded alcobev industry in India representing the collective voice of the alcohol beverage industry. It is a platform to address industry related issues, engage with government on policy and share best practice.