The Indian Liquor Industry Prohibition Story

New taxes were levied on businesses and self-employed people. Almost overnight, illicit brewing and liquor smuggling became one of the biggest industries in the state.Haryana's tourism industry suffered badly as tourists preferred to visit neighboring states where there was no prohibition. Profits of most hotels and restaurants, including the state-owned Haryana Tourism Resorts reached the nadir.

The HVP also paid heavily for imposing prohibition in Haryana. Not only did it lose 8 of the 10 Lok Sabha seats it held in the 1998 parliamentary elections, its leader's son spoke openly against prohibition.As a result, in a 'not-so-surprising' move, the Haryana government decided to lift prohibition in April 1998.The Rs 60 billion Indian liquor industry was delighted by this move. At the same time, prohibition supporters all over the country voiced their objection to this decision, fuelling the age-old dispute over the efficacy of prohibition.