Alcohol Trade Trends in J&K

The renewed debate over liquor policy in Jammu and Kashmir has brought into sharp focus the delicate balance between fiscal necessity, regulatory governance, and social responsibility. Over the past three financial years, the Union Territory has earned more than Rs 3,450 crore from bars and wine shops, a figure that underlines the significant role excise revenue now plays in the region’s public finance architecture. In a fiscal environment where own tax revenues remain limited and development demands are steadily rising, this stream of income has assumed considerable importance for the exchequer.

A district-wise examination of revenue patterns reveals both consistent growth and noticeable regional variation. Jammu district has remained the highest contributor. It generated Rs 51,262.41 lakh in 2022-23, Rs 50,826.31 lakh in 2023-24, and Rs 52,292.83 lakh in 2024-25. During this period, the number of wine shops in the district increased from 140 to 153, while bars rose from 84 to 97. Kathua recorded Rs 12,367.06 lakh in 2022-23, Rs 12,217.17 lakh in 2023-24, and Rs 12,694.98 lakh in 2024-25, reflecting relative stability. Samba showed a steady upward trend, with revenue rising from Rs 8,229.14 lakh to Rs 10,299.42 lakh across the three years. Udhampur also witnessed growth, with collections increasing from Rs 10,777.00 lakh in 2022-23 to Rs 12,987.50 lakh in 2024-25. Reasi moved from Rs 3,125.00 lakh to Rs 3,450.50 lakh over the same period. Rajouri stood out with a marked jump from Rs 5,887.27 lakh in 2022-23 to Rs 15,232.04 lakh in 2024-25, indicating a significant expansion in revenue performance. On the other hand, districts such as Doda, Ramban, and Poonch registered more moderate and fluctuating figures. In the Kashmir division, Srinagar’s revenue more than doubled, rising from Rs 3,086.77 lakh in 2022-23 to Rs 7,632.90 lakh in 2024-25. Anantnag and Baramulla also recorded substantial increases, while districts like Pulwama, Shopian, Bandipora, Budgam, and Kulgam had no operational outlets during these three years. These statistics make it evident that excise revenue is concentrated in specific districts characterized by higher levels of urbanization, tourism inflow, and commercial activity. They also illustrate how closely fiscal planning is linked with the regulated liquor trade. The government has clarified that there is no proposal to declare Jammu and Kashmir a dry Union Territory. It has pointed out that prohibition may lead to unintended consequences such as cross-border smuggling, illegal distillation, and the strengthening of unregulated networks, potentially creating public health and law enforcement challenges. Yet the debate cannot be reduced to revenue figures alone. Social concerns related to alcohol consumption, public health, family welfare, and community sensitivities remain deeply embedded in the discourse. A responsible excise policy must therefore operate within a framework that recognizes both fiscal realities and social obligations. Alcohol taxation functions not merely as a source of income but also as a regulatory lever. Through calibrated pricing, licensing norms, and monitoring systems, governments can influence consumption patterns while maintaining oversight. The wider economic linkages also merit attention. The liquor trade intersects with sectors such as tourism, hospitality, retail, and transport. Thousands of livelihoods depend directly or indirectly on this regulated ecosystem. Abrupt policy shifts could have cascading effects on employment and investment, particularly in districts where collections are highest. This underscores the importance of measured, evidence-based decision-making. Going forward, the key question is not whether excise revenue should form part of the fiscal structure, but how it should be governed. Strengthening compliance mechanisms, enhancing transparency in licensing, curbing illicit trade, and earmarking a portion of collections for public health awareness and de-addiction initiatives can help create a more balanced approach. Regular district-wise monitoring and public reporting of data can further improve accountability.

Jammu and Kashmir’s experience over the past three years shows steady revenue mobilization alongside regional disproportions. The challenge ahead lies in harmonizing fiscal sustainability with social responsibility. A calibrated policy that upholds regulatory discipline, protects public interest, and maintains economic stability will be essential in shaping a prudent and forward-looking excise framework for the Union Territory.