Sunday, 31 July 2011

Goan liquor sailing through the illegal sea route to Karnataka

IT IS sunset in Goa and some businesses close shop for the day and for others it is time the start.

Darkness is creeping in and the Tourism Department’s artificial high mast lights are waiting to be switched on. The crows are returning home along the often deserted stretch of Polem beach on the far point of Goa, close to neighbouring Karnataka.

It is a peculiar Goan beach side - small canoes lined up on the seashore waiting to go to sea. With shadows lengthening and with no sign of the artificial lights, a small fishing canoe leaves the shore laden with gunny bags of dry fish.

Yes, with daylight fading and darkness making its presence, it is time for Darshan Naik (name changed) to kick-off his business operations from the beach. He oversees the loading operation of gunny bags being dumped into the small motorized canoe.

For any naïve first time visitor to the beach the bags fills ones nostrils with the strong smell of dry fish. But the three labourers know that it is not just dry fish.

Hold your breath. Sandwiched between the dry fish are popular brands of Goan liquor bottles stuffed in gunny bags to be transported to Karnataka along the sea route and it has been for the last 15 years that Drashan and been doing this.

One evening, Darshan a post-graduate was aimlessly walking on the lonely beach. He was jobless and had to do something to keep the home fires burning. An idea struck him. He would join the illegal liquor transportation system from Goa to Karnataka.

His task has not been easy since he joined the trade. He regularly bribes politicians, the excise people and keeps them happy. He also keeps his excise guards at the other end of the state happy in Karnataka by giving them their monthly dues, he says. And he has mastered the trade.

Darshan and his workers are seasoned in the illegal transportation of liquor. The sea is one route were liquor is smuggled across the state borders, the others being the rail and road network.

The unloading operation will be at one of the not so frequented beach areas in Karwar district. Then the question asked is - why do people in Karwar prefer Goan liquor over liquor manufactured locally.

Goa is famous for good quality liquor. Goa’s coconut and cashew Feni sells like hot cakes. As its name suggests, coconut Feni is extracted from the flower of the coconut palm tree and cashew Feni from the cashew fruit.

In the neigbhouring state of Karnataka, the government had control over extraction and distribution of the local country liquor- Arrack, till 2006, but has since banned the production of the country liquor. The ban has since fuelled the demand for Goan country liquor in Karnataka.

The people of Karwar district in Karnataka had this to say about Goan liquor: "We have tasted it and know about Goan liquor- Feni. We prefer the Goan variety over the home made stuff (Karnataka). It is not adulterated and now with the government ban we have no choice. The quality is much better than ‘arrack’ and the price is still competitive," said Sushant Naik.

But then smuggling of liquor from Goa into Karnataka is not confined to just country liquor. Other liquor is also ferried through the sea route. Whisky, Brandy, Rum, Gin, and Vodka termed Indian Made Foreign Liquor (IMFL) finds its way into Karnataka, says Darshan.

There is a large market for IMFL products in Karwar district and beyond, says Darshan, which he has been exploiting to his benefit.

The Goa government’s liquor policy has seen excise duty imposed on liquor products relatively on the cheaper side compared to other states. A policy which means liquor rates in Goa are on the cheaper compared to other states.

So it is a win-a-win situation for smugglers from Goa and for the traders in Karnataka. Both end up getting a huge pie from the smuggling operations. The customers too are happy to have a peg or two of IMFL manufactured in Goa.

With liquor being a huge revenue earner states are cautious in protecting and nurturing their revenue by supporting the state level distilleries.

Daman and Diu, the former Portuguese colonies like Goa have liquor relaxation in terms of its availability but the same does not extend to the neighbouring state of Gujarat, which is a ‘dry state.

The sale of liquor continues in Gujarat through other channels. The supply is fulfilled by boot leggers. There is also a demand for high end quality liquor in Gujarat. The cost of foreign liquor is high and it is supplied through the smuggling channels.

Every year in Gujarat, confiscated liquor is destroyed, so much for its dry state status.

Despite all the factors, the Indian liquor industry continues to thrive. Side by side illegal boot legging industry carries on. Both meet the demand for liquor. Both have a common end -- to reach the customer and meet the demands of the market. It is the reach and the way it reaches the respective consumers that differs.

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