In a state where queues outside Bevco shops often snake around the block — rain or shine — it might come as no surprise that Kerala ranks among the states with the fewest liquor outlets in the country. But now there’s data to back it up.
According to a report in the Economic Times, citing figures from the International Spirits and Wine Association of India, Kerala has just two liquor shops for every one lakh consumers — far below the national average of 5.2. With only 326 licensed outlets currently operating, demand continues to outstrip supply in many parts of the state.
States like Punjab have 6,374 liquor outlets, the highest in the country. But at the other end of the spectrum, Kerala and Maharashtra are struggling to keep up — both clocking in with just around two shops per one lakh people.
In fact, Maharashtra hasn’t issued a single new liquor licence since 1973. All current shops function by transferring existing licences — essentially recycling the old rather than adding new. That may explain why the total number of liquor outlets in the state stands at only 1,714.
Kerala fares no better. The state has just 326 liquor outlets: 278 managed by the state-run Beverages Corporation (Bevco) and another 48 under Consumerfed. Although Bevco is reportedly planning to open 253 more shops, they’re not up and running just yet.
Here’s the thing — fewer shops doesn’t just mean longer queues or road trips to the nearest outlet. According to the report, the limited number of licensed vendors is pushing up prices and reducing consumer choice. Fewer players on the field means fewer brands on the shelf — and that’s something regular buyers are likely noticing.
It could also be fuelling a less talked-about consequence: the rise in illegal liquor sales. If licensed supply doesn’t match demand, there’s a chance the black market will try to fill the gap. Some experts speculate that unregulated sales and exploitation could be creeping up as a result.
To put it into perspective, China — with a comparable population — reportedly has around 60 lakh liquor retail outlets. That’s nearly 100 times more than India. While the Chinese shelf is overflowing, the Indian one is barely stocked by comparison.
This mismatch is becoming more obvious as India’s population grows but liquor retail infrastructure stays mostly frozen in time. Despite growing demand, especially in urban pockets, expansion of outlets hasn’t kept pace.
Some in the industry suggest that updating the retail liquor landscape with more modern, regulated shops could help solve the problem. Beyond addressing consumer needs, such a move might also mean more tax revenue for state governments. But again, that’s easier said than done — especially in states where the liquor trade is a politically sensitive subject.
For now, though, the takeaway seems to be clear: whether it’s choice, cost or access, the average Indian consumer is probably not getting a smooth deal from the current setup.
