brand logo

Expensive vices, cheap alternatives

08 Sep 2022

  • Consumers note having to balance excess expenses against limited income
BY Sumudu Chamara   Increasing inflation keeps affecting all sorts of highly sought-after goods, in turn impacting various segments of society. Two such goods that became more expensive recently were liquor and cigarettes, which are in high demand. The main reason was the increase in the Value-Added Tax (VAT).  This is in a context where the Department of Excise stated that the demand for liquor had decreased by 40%, due mainly to the recent increase in the prices of liquor and the decrease in the income of the people of the country, and in a context where the Government has banned the importation of foreign liquor as part of its efforts to limit the outflow of foreign currency. According to Excise Commissioner (Law Enforcement) Kapila Kumarasinghe, the said decrease has been measured considering the sales of the market leader of the country.  This statement came after a revelation at the Committee on Public Finance (COPF) earlier in the year that the demand for liquor had decreased by 30%.  This situation, according to liquor consumers, has resulted in a multitude of diverse impacts on them and has forced them to resort to cheaper liquor-based alternatives (such as kassippu [moonshine]), some of which are generally considered to be more unhealthy than products of approved distilleries and are illegal. To discuss this, The Morning spoke to members of the general public.   Decrease in liquor purchases   According to the responses of those who spoke with The Morning, the above-mentioned percentage of the decrease in liquor sales resonates with most liquor consumers. They express great displeasure with regard to the Government’s decisions that have affected the prices of liquor. “Liquor and cigarette prices were the least affected goods in the economic crisis, and for many consumers, liquor and cigarettes were the main means of dealing with the stress that they experience due to the economic crisis. Now, that too has become more expensive,” 33-year-old electrician Anuradha Jayasena* said. He added that he and many liquor consumers known to him are affected by the increase in the prices of liquor, which he said has a direct impact on how much money they allocate for their families’ expenses.  He explained: “I am not saying that consuming liquor is or should be a bigger priority than food and other basic expenses of a household. However, those who consume liquor including myself allocate a considerable amount of our income for liquor, and it has become a necessity. In the current context where the prices of liquor have gone up significantly, we find it difficult to allocate the same amount for both liquor and the expenses of our family. When the Government allows price hikes for liquor, that affects the state of families, not just liquor consumers. Just a few months ago, before the prices of liquor were increased, I used to spend around Rs. 1,500 on liquor and cigarettes every day, and allocate around Rs. 2,500 for my family’s expenses. This was when I used to earn between Rs. 4,000 and Rs. 5,000 a day. Now, I earn only around Rs. 3,000 a day, because my clients are struggling to fund household wiring-related work due to the increased prices of materials such as wires. Now I can allocate only around Rs. 1,000 for liquor and cigarettes and less than Rs. 2,000 for my family. Both I and my family are suffering due to the inflation and increased liquor prices.” Some persons such as 40-year-old private sector worker Bhanuka Jayanath* have, however, completely quit liquor, owing to high inflation and the increased prices of liquor. He elaborated on his experience: “I have been consuming liquor for around 15 years. I used to buy at least two to three bottles a week. However, the prices of liquor have increased exponentially, and funding my drinking habit is no longer an advisable act given the financial situation of my family. I decided to quit consuming liquor several weeks ago when the Government increased the prices of liquor for the first time in the past few months. Having been a heavy drinker, I do not know how long I can refrain from drinking; however, I took that decision and I have been successful thus far.”  Adding that quitting liquor consumption is a necessary act that all liquor consumers should pay attention to, he said: “I understand that drinking sometimes feels like a necessity. Sometimes it is. However, as adults, we should have the ability to identify what our priorities are. If a liquor consumer’s family does not have enough money to get by, that is a sign that they should identify their priorities. Making sure that their family has enough food and money for other essential expenses should be the priority, not consuming liquor.” Several other liquor consumers also said that they have had to cut down on liquor consumption due to inflation. Even though it was a huge transition, they said, it is a necessary action in order to ensure that their income is utilised in a judicious manner that supports their families.   Increasing illegal liquor market    However, some liquor consumers have reduced the consumption of only legal liquor. To meet their usual overall liquor requirement, they have started purchasing more illegal liquor. As The Morning learnt, some of them have started consuming illegal liquor only following the price hikes of legal liquor. “Needless to say, the prices of legal liquor have gone up by around 100%. Even though the previous price hike was manageable, working-class people like me cannot keep increasing the money we allocate for liquor a month. The most recent price hike was the limit, and it left me with no other option but to consume more illegal liquor. Usually, I buy two bottles of liquor a week for my personal consumption. But, now, I buy only one bottle of legal liquor, and I have had to purchase one bottle of illegal liquor in order to make sure that I have the same amount of liquor supply,” 27-year-old private sector worker Sandun Perera* divulged. In response to a question about whether he thinks that the said move is a prudent one as far as the financial aspects of it are concerned, he said: “It does not help me save much, because the prices of illegal liquor too have been increased. But, I save some money, which is really important in this time of crisis. If I have to, I will even completely switch to illegal liquor. Those who preach to us about the impact of illegal liquor do not give us money or jobs to make more money. I think that we have to find our own solutions, and have to adjust.” With regard to the health safety issues and the lack of standards related to concerns surrounding illegal liquor, Perera said that even though illegal liquor is usually viewed as a massive threat to consumers’ health, if the producer is a responsible person who cares about his clients’ health, people can purchase good quality illegal liquor. “Now that more and more people are shifting to illegal liquor, I think that the quality of illegal liquor will further increase. No illegal liquor producer wants to lose their clients by providing low-quality liquor, especially when their business is booming.” Meanwhile, 51-year-old R. Fernando*, who has started consuming illegal liquor due to the recent price hikes of legal liquor, said that he started producing his own illegal liquor due to cost and health-related concerns. He said that he, however, does not sell what he produces. He explained: “Producing illegal liquor is a very simple process. I started this as soon as the liquor prices increased for the second time in the past few months. Several liquor consumers I know have started consuming illegal liquor due to the same reason. I, however, started producing my own liquor, due to health and cost-related reasons. I know how my illegal liquor is produced, and I know that I am not spending more than I am supposed to.” When questioned about the legality of the production of illegal liquor, Fernando said: “Since I am not making that illegal liquor to sell, I do not think that I would get into trouble. I make sure that only my family is aware of it.” The country has seen various indirect impacts of the economic crisis, and the impacts of increased liquor prices have emerged as a new issue following the most recent price hike. Even though activists advocating against liquor consumption may view decreased liquor consumption as a positive development, the tendency to consume illegal liquor is an alarming situation. It can even grow to be a social issue in the future if these indirect impacts are not taken into account.  


More News..