Qualitatively 'happy hours': India’s liquor problem is not what you think

FSSAI has clamped down on a handful of popular iconic alcohol brands like Old Monk and Royal Challenge. The culprit is extra neutral alcohol (ENA), the colourless and flavourless base spirit of all IMFL, to which is added ‘Nature identical flavouring substances’, and exaggerated claims of ageing.

ENA is derived either from molasses, or grains (wheat, rice and corn).

Tests found that Old Monk had more than 95% un-aged neutral ENA, with less than 5% matured rum spirit. In authentic rum (or whisky), the distinctive aroma and taste come intrinsically from the spirit and maturation process. The manufacturer, Mohan Rocky Springwater, appearing in Bombay High Court, agreed to modify its bottle labels from ‘7 Years Old Blended’ to ‘Flavoured Rum’.


What we drink is artificially-flavoured neutral spirit. Indians love their liquor. Internationally, the Indian market is the largest consumer of ‘whisky’ by sold volume. McDowell’s No. 1 held the title for the world’s bestselling whisky for years. But what we drink is slop, and it’s as much GoI’s fault as it is the manufacturer’s, even as this time around, FSSAI seems to be saying, ‘We want the consumer to imbibe better, or at least know what they are imbibing.’

The average Indian is stuck with iffy IMFL brands from decades ago. A tiny sliver of the urban elite can afford expensive cocktail bars. Again, it’s a niche market that buys award-winning Indian single malt and craft gin. For the rest, one is still drinking brands that existed two generations back. This in itself isn’t a negative. Brands build loyalty over time.

The problem is, one is drinking the same plonk because the consumer doesn’t have an option. The reason: while the government wants us to drink better, it itself throws a spanner in the works of citizens wanting to drink better-quality liquor.

Europe, Britain and the US have long argued for fewer tariffs on their wine, Scotch and bourbon respectively. Trade talks happen, tariffs are lowered somewhat, but not to the extent they should be, where prices can potentially drop so substantially that the IMFL consumer will happily switch. An inexpensive Australian wine or a young blended Scotch is infinitely preferable to indigenously-manufactured flavoured and coloured neutral spirit.

GoI digs in its heels and refuses to budge, not wanting to lose revenue. Duties remain on the higher side. Often, cuts are not fully passed on to consumer. The argument is that duties on imports are needed to protect domestic brands. The irony is that many of these domestic IMFL brands are owned by MNCs like Pernod Ricard and Diageo. So, we are extending domestic protectionism to a multinational. Something doesn’t quite sound right here. Do these corporate behemoths want the protectionism?

GoI’s over-reliance on alcohol revenue means the Indian consumer pays through her nose for definition-defying liquor. Cheap IMFL whisky isn’t cheap. A bottle of Royal Challenge currently retails at more than `800, not cheap by Indian standards.

If GoI really wanted us to drink better, it would lower taxes significantly, so that companies can bring in better-quality spirits into the market.

When FSSAI launched the current campaign, one was reminded of the early days of Royal Stag, which proudly boasted: ‘No Added Flavours’. It was a good boast, except that most people then — pre-internet era — were unaware of the ingredients of what they were drinking. Imperial Blue, also originally a Seagram’s brand, avoids the Old Monk false-claim trap of printing the exact time-span of ageing, by saying, honestly, ‘Triple filtered, with additional time for extra smoothness’. How long, it’s not mentioned.

Another problem for the budget drinker who wants to drink better is the corruption endemic in the distribution process. One doesn’t get the brand one is looking for. In Uttarakhand, for instance, one beer brand dominates the shelves every year. Small mercy: the brand keeps changing. A bribe ensures your brand’s visibility. Delhi IMFL stores are stocked with unheard-of fly-by-night brands.

A budget tippler would like to drink better for less. She might even be willing to pay a little more. GoI wants us to do this. But it doesn’t make it any easier. While the FSSAI move is welcome, a lot remains to be done before we can say ‘Cheers!’ with some conviction.

The writer is editor of the anthology, House Spirit: Drinking in India.