Bihar's alcohol ban fails to reduce crimes against women, finds NCAER study

The National Council of Applied Economic Research (NCAER) has recommended that Bihar withdraw its prohibition on alcohol, arguing that the ban has not achieved its stated objective of reducing crimes against women. The research paper, titled 'Macro Perspective of Bihar's Development Achievements, Unfinished Agenda, and the Way Forward', was presented at the India Policy Forum and examines the social and economic impact of the prohibition introduced in April 2016.

The ban was implemented based on the belief that alcohol consumption significantly contributed to domestic violence and that households would redirect money spent on alcohol towards more productive uses. Women's groups and activists had strongly supported the measure, expecting it to reduce alcohol-related abuse. However, the NCAER economists, led by Ratna Sahay, say the available data now allows an assessment of whether these objectives were met.

According to the paper, reported crimes against women in Bihar have not declined following the introduction of prohibition. Instead, the total number of reported crimes against women increased over the post-2016 period. The study notes that the evidence does not show a broad-based reduction in such crimes, and that the ban coincided with concerns over the expansion of illicit liquor networks, enforcement difficulties and corruption.

The researchers also point to a significant rise in illegal liquor trade, leading to higher alcohol consumption and increased crime and corruption. Additionally, there has been an increase in the use of alternative intoxicants, including illicit drugs. These developments, the paper suggests, have undermined the intended social benefits of prohibition.

Beyond the social impact, the prohibition has imposed considerable fiscal costs on the state. Before the ban, excise duty on alcohol accounted for about 14 per cent of Bihar's own revenues in the three years preceding prohibition. The government has since incurred higher expenditure on monitoring, enforcement and anti-smuggling operations, adding to fiscal pressures. The paper argues that restoring liquor excise duty to pre-ban levels could increase the state's own revenues by 14-15 per cent, while reducing enforcement costs.

The NCAER paper concludes that prohibition has not achieved its intended objectives and has instead coincided with higher reported crimes against women, loss of state revenue and increased enforcement expenditure. It recommends that Bihar reconsider its policy and reinstate the excise duty on alcohol at historical levels to restore this revenue stream.

Beyond the issue of prohibition, the paper outlines six interconnected areas that should form the core of Bihar's development strategy: education, health, governance and law and order, flood mitigation, private-sector development and women's empowerment. The researchers say reforms in these areas are necessary to improve productivity, accelerate structural transformation and create better-quality jobs for Bihar's young population.

The study also examines the state's public debt and fiscal sustainability, and assesses the financing required for different reform scenarios. It calls for a combination of stronger own-revenue mobilisation, more efficient public spending and additional central government support to address Bihar's development challenges.

The findings add to the ongoing debate over prohibition in Bihar, with the state government maintaining that the ban is a social measure despite the economic and enforcement concerns raised by researchers.