The Indian Liquor Industry Prohibition Story
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Details
Case Code:
BECG011
Case Length:
8
Period:
Pub Date:
2002
Teaching Note:
YES
Price (Rs):
0
Organization:
Not Applicable
Industry:
Food & Beverage
Country:
India
Themes:
Accountability
Abstract
The case is so structured as to enable students to examine the political, economic and social consequences of liquor on society to discuss the ethical dilemma of the liquor business for the Governments, industry and the society to explore feasible alternatives to the dilemma faced by companies regarding their economic performance and social responsibilities.
Learning Objectives
The case is structured to achieve the following Learning Objectives:
- Prohibition and its consequence
- and Ethical dilemma of the governments in prohibition.
Contents
In 1996, in the north Indian state of Haryana, the Haryana Vikas Party (HVP) promised to make it illegal to buy, sell, consume or produce alcohol in the state if it were elected to the state assembly.1 The opposing parties criticized the HVP for trying to gain political mileage out of a sensitive issue like liquor prohibition. Despite the criticism, HVP won the elections and its leader Bansi Lal carried out the party's promise within minutes of becoming the Chief Minister (CM).
The consumption of alcohol is perhaps as old as civilization itself, and has played a significant role in religion, medicine and culture. Throughout the history of the world, drinking has been associated with revelry and feasting...
The Indian liquor industry is divided into two broad segments:Indian Made Foreign Liquor (IMFL) and country-made liquor. IMFL comprises alcoholic beverages that were developed abroad but are being made in India (whisky, rum, vodka, beer, gin and wine), while country-made liquor comprises alcoholic beverages made by local breweries.
Soon after independence, prohibition was imposed in the erstwhile state of Bombay. The first large-scale movement against alcohol began in the 1970s, when rural women in various parts of the country protested against the sale of liquor in their villages...
The efficacy of prohibition to curb alcohol consumption became questionable when it became known that the availability of alcohol actually increased in Haryana and AP after prohibition, albeit at higher prices. The experiences with prohibition all over the world prove that it is extremely difficult to make it a success...
Following the accident, the GoI filed a compensation lawsuit against the UCC for an estimated US$3 billion. However, UCC felt that the GoI was to blame for the disaster. In December 1986, UCC filed a countersuit against the GoI and the State of Madhya Pradesh...
Exhibit I: The Indian Liquor Market
Keywords
Liquor on society, ethical, Governments, Business Ethics, case study, The Indian liquor industry prohibition story
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