Kerala has unveiled liquor policy reforms to boost tourism and revenue, targeting MICE events, destination weddings, and cruise tourism, while also aiming to generate jobs and support agricultural revival
Published Apr 15, 2025 | 8:20 PM ⚊ Updated Apr 15, 2025 | 8:20 PM
Synopsis: Kerala’s iconic toddy shops, long seen as gritty male-only spaces, are set for a transformation. Under the new Abkari Policy 2025–26, the state aims to revamp these rustic hubs into clean, family-friendly cultural and culinary destinations. By improving hygiene and ambience, the government hopes to reposition kallu shappus as vibrant attractions on Kerala’s tourism map
For generations, Kerala’s iconic kallu shappus — the humble toddy shops — have served as much more than watering holes. They’ve been rustic social hubs where locals gathered over earthen pots of fermented palm nectar and fiery, flavour-packed side dishes that singe the tongue and warm the soul.
But behind the heady allure of toddy lies a long-standing image problem. Smoky interiors, stained tables, and a clientele of hard-drinking regulars have long kept families and tourists at arm’s length.
For many, stepping into a toddy shop meant embracing the grit along with the sip. Now, the Kerala government wants to change that narrative.
In the newly unveiled Abkari Policy 2025–26, the state is placing the traditional toddy sector in the spotlight — not as a relic of the past, but as a vibrant cultural experience ready for reinvention.
The goal? Clean up the toddy shops, elevate their ambience, ensure hygienic practices, and turn them into must-visit culinary and cultural destinations for both families and tourists alike.
With this policy shift, Kerala is ready to toast a new chapter — one where kallu shappus shed their outdated image and emerge as the soulful, sanitised, and savvy stars of Kerala’s tourism map.
Going by the new policy, the state is reimagining its traditional toddy industry by blending heritage with tourism, hygiene, and branding.
Long associated with rustic charm and working-class camaraderie, toddy shops (kallu shaps) are set for a stylish makeover — complete with hygienic infrastructure, curated menus, and tourist appeal. The state government has announced plans to revamp toddy shops into clean, vibrant food hubs offering Kerala’s famed spicy dishes alongside freshly tapped, natural toddy.
The aim is to position toddy as a signature beverage of Kerala, much like sake in Japan or tequila in Mexico. A common design model, developed with professional help, will ensure uniform standards across shops.
Chittur in Palakkad, which produces nearly 90 percent of Kerala’s toddy, will continue to anchor this cultural revival. The initiative will also support rural livelihoods, with toddy tappers and cooperative societies empowered to manage unsold shops.
In a boost to the hospitality sector, three-star hotels and above will now be allowed to serve bottled toddy — to be branded as Kerala Toddy — and even produce it onsite by tapping their own trees. Additionally, “toddy parlours” may soon open in tourist destinations under government permits, offering visitors an authentic, local experience.
Export of bottled toddy and value-added products is also on the anvil, with legal changes in the pipeline. This multi-pronged approach aims to shift preferences from hard liquor to natural toddy, promote local cuisine, and provide a unique draw for domestic and international tourists.
In a major push to enhance its tourism sector and generate additional revenue, the Kerala government has announced a series of reforms in its liquor policy.
These measures aim to support MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism, destination weddings, and cruise tourism, while also creating employment and reviving agriculture.
Recognising alcohol as an essential component of international events, the government has decided to issue temporary foreign liquor licenses to 3-star and above hotels, including heritage and boutique establishments, for first day of each English month, which is observed as a dry day (a day in which the selling of the alcohol is prohibited).
These licenses, costing ₹50,000, must be applied for at least seven days in advance. However, if the first day of the month coincides with another legally mandated dry day, the license will not be issued.
Tourism operators have welcomed this move, as events were increasingly being shifted out of the state due to the liquor restrictions, leading to substantial losses in revenue and job opportunities.
Additionally, to promote cruise tourism, private passenger vessels registered under the Kerala Maritime Board and certified by the Indian Register of Shipping will be eligible for an FL-13B license to serve foreign liquor onboard. The state-owned vessel Nefertiti has already received this license.
In another significant step, the Kerala State Beverages Corporation will be allowed to supply liquor to the Lakshadweep administration, potentially boosting state revenue.
The state has also permitted the production of low-strength alcohol and wine using indigenous agricultural produce, excluding grains, to support local farmers and promote agrarian revival.
The state government is facing intense backlash over its new liquor policy, with critics alleging it contradicts the state’s declared war on drugs.
Opposition leaders and the Kerala Catholic Bishops’ Council (KCBC) have slammed the government for liberalising alcohol access while publicly vowing to combat substance abuse.
Leader of Opposition V D Satheesan termed it “hypocrisy,” pointing out that the cabinet approved serving liquor even on dry days.
KPCC president K Sudhakaran accused the Chief Minister of “rewarding bar owners” after they allegedly collected crores during the election period to push for the policy changes. An audio clip from a bar owners’ meeting revealed a demand of ₹2.5 lakh from each establishment, he added.
The new policy allows liquor on dry days, service on tourist ships, toddy in three-star hotels, and bars in IT parks—fulfilling all major demands of bar owners. Critics likened the move to offering a boon to Bhasmasura (a demon in Hindu mythology).
Meanwhile, the KCBC Temperance Commission likened the policy to “pouring oil on fire” and blamed the government for downplaying alcohol’s role in substance abuse. It also questioned the exclusion of long-standing anti-addiction groups from crucial policy discussions, calling the campaign against drugs a mere farce.
At the same time, the Excise Department says that the new liquor policy is a platform for a mass awareness campaign centered on alcohol abstinence.
It also revealed that this year’s liquor policy will place special emphasis on creating a social movement through intensified anti-addiction activities.
Officials said the government has already recognised that awareness activities focusing on abstinence are the most effective way to reduce alcohol addiction in society. As part of this, the policy will integrate a series of coordinated campaigns across schools, local bodies, and educational institutions.
“Alcohol-related harm is not just a personal issue, it’s a societal one. So our approach this year is to mobilise people at every level — from schools to districts — to form a collective front against substance abuse,” an official with the Excise Department told South First.
The new policy mandates that public awareness committees at school and district levels meet at regular intervals to plan and assess anti-drug activities. Similarly, local government-level committees will convene every three months to review progress.
Efforts will also extend to tuition centers, with anti-drug activities being conducted in collaboration with local public awareness committees. Parents, too, will be roped into the initiative through structured awareness classes.
“Engaging parents, especially in the formative years of a child’s life, is crucial. That’s why we’re emphasising parental involvement in our anti-addiction strategy,” said the official.
A significant share — 25 percent — of the State Beverages Corporation’s CSR fund will be exclusively allocated to liberation (de-addiction and awareness) activities. These will be implemented under the Vimukthi Mission, which will expand its operations by tapping into additional CSR funds from private companies willing to support its cause.
In a move to enhance public participation and real-time surveillance, the government will roll out a web-based mobile app called People’s Eye, which will allow citizens to anonymously report the sale, storage, or use of illegal drugs.
As Kerala raises a toast to tradition with a modern twist, its new liquor policy walks a tightrope between cultural reinvention and social responsibility. On one hand, the state seeks to revitalise its toddy heritage and boost tourism-driven revenue; on the other, it must navigate the moral and political fallout of perceived liberalisation.
The challenge is to blend toddy shops into tourist magnets without turning public opinion sour.
(Edited by Ananya Rao)
