Daijiworld Media Network – Srinagar
Srinagar, Feb 10: Jammu and Kashmir Chief Minister Omar Abdullah on Tuesday clarified that the Union Territory government has no proposal to impose prohibition on alcohol, warning that a complete ban could fuel black markets, boost illicit liquor trade and adversely impact tourism and the economy.
Responding to a question by BJP MLA Balwant Singh Mankotia in the J&K Assembly, Abdullah, who also holds the finance portfolio, said prohibition could lead to large-scale smuggling of liquor from neighbouring states and Union Territories.
“There will be a rise in illicit liquor as illegal distillation would increase, posing serious risks to public health,” the chief minister said. He pointed out that the destruction of 13.65 lakh kg of lahan and 16.3 thousand litres of illicit liquor during 2024-25 and 2025-26 highlights the dangers posed by spurious alcohol.
Abdullah cautioned that prohibition could strengthen liquor mafias and underground networks. “Money laundering and hawala activities may grow, impacting both security and the economy,” he said.
He further noted that thousands of people engaged in manufacturing, wholesale, retail, hospitality and transport sectors — particularly youth — would lose their livelihoods if liquor sales were banned. “Thousands of vehicles dependent on liquor trade would also be adversely affected,” he added.
The chief minister also warned of industrial losses, stating that the bottle manufacturing industry would suffer due to reduced demand. Stressing the importance of tourism, Abdullah said visitors expect access to alcohol and prohibition could reduce tourist inflow, with many opting for neighbouring states instead.
“Hotels, restaurants and resorts rely on liquor sales to enhance customer experience and revenue. Many tourists prefer hotels with bars, and prohibition will affect occupancy and earnings,” he said.
According to Abdullah, alcohol regulation involves complex social, economic, ethical and public health considerations. “Taxation on alcohol acts as a dual tool — generating revenue while discouraging excessive consumption,” he added.
The issue has gained prominence following calls by J&K Grand Mufti Nasir-ul-Islam and PDP chief and former chief minister Mehbooba Mufti for a complete liquor ban in the Union Territory. Reacting to what he described as a surge in liquor use, the Grand Mufti urged the government to prohibit the sale and consumption of alcohol.
Official data shows that Kashmir generated excise revenue of Rs 18,448.50 lakh over the last two years, despite being a predominantly Muslim region where liquor consumption remains socially and religiously sensitive.