Bars reopen as Bevco slashes profit margin

Panel suggests reduction in profit margin on liquor sold to bars from 25% to 13%

The Kerala State Beverages Corporation (Bevco) has slashed its wholesale profit margin on liquor to break the deadlock in the hotel sector. The State-owned liquor monopoly’s “arbitrary decision” to hike the profit margin on alcohol brands from 8% to 25% had prompted the closure of 730 bar hotels and 300-odd beer and wine parlours in the State on June 20. The hotelier’s association had argued that the purchase rate of legal liquor was higher than the MRP. Hence, bars had to sell alcohol at a loss or risk prosecution. So they chose closure, further crippling a pandemic-ravaged sector that is also a significant employer.