It’s raining money on milk cess on liquor in Himachal Pradesh

Shimla: Liquor consumption is injurious for health and can damage the liver and its functions, is what medical science has been telling but for the hill state of Himachal Pradesh, the sale of liquor is raining money and improving fiscal health of the state.

The decision of Himachal Pradesh government –a proposal mooted in the state’s budget for year 2023-24 to impose milk cess of Rs 10 per bottle sold, has had significant impact on the state coffers.

As per data laid in the state Assembly, the state government is going to earn a revenue of Rs 100 cr from this during the current financial year.

Chief Minister Sukhvinder Singh Sukhu, who is the brain –behind the move and aiming that major shift on the cattle economy in the state, said more liquor sold in the state, is showing an impressive outcome on the state’s revenue generation efforts. ‘The money generated from the milk cess will be used in creating better infrastructure for milk production and also higher income for the cattle rearers. This is how the rural economy will see a boost,’ he says.

The figures presented in the House, in response to a question tabled by Kewal Singh Pathania (Congress) and Randhir Sharma, revealed that the state has collected Rs 90.78 crore through Milk Cess till January 15,2024. The highest share of collection has come from the district of Kangra –state’s biggest district bordering Punjab.

A staggering Rs 16.53 crore was generated in Kangra followed by Rs 13.79 cr in Shimla—the state’s capital. Other districts include Baddi Rs 7.28 cr and Solan Rs 6,10 cr.

The milk cess collections from Mandi has been equally impressive at Rs 9,31 cr and Kullu and Lahaul-Spiti together posted a return of Rs 7.28 cr. Una and Kinnaur returned Rs 5.72 cr and 1.28 cr respectively.

Industries minister Harsh Vardhan Chauhan, who replied in the House, on behalf of the Chief Minister, later said the government, in the next budget, has given a substantial hike in the milk prices to the farmers as a step to raise their income.

It’s the first time in the country that a state has given MSP on the milk.

The price of cow milk has been raised from Rs 38 to 45 per liter in case of cow milk and Rs 47 to 55 for buffalo milk from April 1,2024.

The farmers and animal rearers will not only get the cost-based price of the milk produced but also quality bonus. The government has also proposed setting-up a 1.5 Lakh litre per day capacity fully automated milk and milk products plant at Dhagwar in Kangra district of lower Himachal region. The land has already been made available for the plant whose capacity will be doubled later.

While presenting the budget, Chief Minister Sukhu said the decision on imposing Rs 10 has paid off well in the drive to raise the resources of the state which will be used for the development and welfare of the people, especially farmers and other deserving sections.

He hinted that the collections from the milk cess may exceed Rs 100 cr as the excise duty and VAT together are expected to register a growth of 22 percent this year.

The Chief Minister’s announcement is the outcome of Congress’ pre-poll promise to increase the income of cattle rearers.