J&K Govt rules out liquor ban, cites smuggling, job losses
Srinagar, Feb 10: The Jammu and Kashmir government on Tuesday said it has no proposal at present to declare the region a “dry” Union Territory.
Replying to an unstarred question by legislator Balwant Singh Mankotia, the government said prohibition could lead to large-scale smuggling of liquor from neighbouring states and union territories and encourage illegal distillation, posing serious public health risks.
Data tabled in the Legislative Assembly showed that liquor sales continue to generate substantial revenue, largely from the Jammu region. Jammu district alone earned Rs 52,292 lakh in 2024–25 from 153 wine shops and 97 bars, compared with Rs 50,826 lakh in 2023–24 and Rs 51,262 lakh in 2022–23.
Other districts in the Jammu region also recorded sizeable collections. Udhampur generated Rs 12,987 lakh in 2024–25, Rajouri Rs 15,232 lakh, Kathua Rs 12,694 lakh and Samba Rs 10,299 lakh, according to the data.
By contrast, most districts in the Kashmir Valley reported either limited or no liquor outlets. Srinagar recorded revenue of Rs 7,632 lakh in 2024–25 from seven wine shops and four bars, while Anantnag, Baramulla and Ganderbal together earned less than Rs 1,800 lakh during the year.
Several south and north Kashmir districts — including Pulwama, Shopian, Bandipora, Budgam and Kulgam — reported no wine shops or bars and no liquor revenue over the past three financial years, the annexure showed.
The government said enforcement agencies had seized more than 16,300 litres of illicit liquor and destroyed over 1.36 million kilograms of raw material used for illegal distillation between 2024–25 and January 2026.
It warned that prohibition could strengthen underground liquor networks, including money laundering and hawala operations, and lead to job losses across manufacturing, wholesale, retail, transport, hospitality and tourism sectors, particularly affecting youth.
Liquor taxation, the government added, served as a dual instrument by generating revenue while acting as a deterrent against excessive consumption.
