Govt to review policy on liquor factory licensing

KATHMANDU, FEB 02 -

The government is considering putting in place ‘tough criteria’ for issuing licences to new liquor factories.

The Department of Industry (DoI) has now stopped issuing new licences, citing the need for a review of the licensing policy. With over 100 proposals with DoI, the licence seekers have to wait until the Ministry of Industry (MoI) comes up with a new policy.

Some two months ago, the government had lifted a 12-year ban on setting up liquor factories and awarded the licenses to 34 individuals/companies, including the country’s top business houses and established liquor industry players.

A meeting of Industrial Promotion Board chaired by Industry Minister Anil Kumar Jha a couple of weeks ago decided to review the licensing policy amid growing concern from line ministries and civil society over the impact of liqueur factories on public health.

However, some ministry officials termed the government move ‘a ploy to completely stop issuing new licences and give monopoly to a certain players’.  

Minister Jha, however, said the decision was taken amid concerns from line ministries and stakeholders. “We need to review the existing licensing policy as there are already many liquor factories in the country,” said Jha.

According to Industry Secretary Krishna Gyanwali, the next meeting of the board will form a taskforce to review the existing licensing policy and prepare a term of reference.

As of now, there are 15 big and medium-sized liquor factories registered at the department. Among them, 10 are in operation.

As per the Nepal Liquor Manufacturers’ Association (NELMA), the country imports liquor products worth Rs 4 billion annually, while domestic output is worth Rs 11.70 billion.

Source: The Kathmandu Post