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Intoxicant Revenue A Complex Analysis

“Not paan or bidi, but a small addiction – unnoticed, it drains your money,” (paana bidi nuhen chhotia nishaa janaa pade naahin taane paisa), we used to read. Yet, a few years ago, it was common to see government officials with a mouth full of paan and a half-burnt bidi tucked between their left fingers. The corners of office walls were often “decorated” with colorful betel-spit stains. Gradually, through government efforts, these sights have largely ended. Over time, paan lovers shifted toward gutkha. Today, due to the easy availability of major intoxicants like liquor, brown sugar, cannabis (ganja), and opium, items like paan, bidi, gutkha, and cigarettes are no longer even counted as significant addictions.

It is observed that while alcohol causes the most crime in society and destroys families, the government—under the guise of revenue—is actively promoting it. On the other hand, why has the government banned the use of cannabis (ganja), which has been linked to our religion and culture since time immemorial and generally does not incite social unrest or violence? Considering both social stability and revenue growth, the time has come to review all intoxicants.

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A common citizen wonders: while the production, import, sale, and use of alcohol are encouraged in India, why is cannabis illegal? Can its production, sale, and use not be legalized? Indians share a strong mythological and medicinal bond with cannabis. It has been a part of our festivals and culture for centuries. Whether it is the worship of Akhandalamani or Rudrabhishek in Odisha, a bit of cannabis is often required. Even though monks and saints in monasteries and temples have traditionally consumed cannabis, they are never heard of causing the kind of destruction or nuisance that drunkards do.

Whether for medicinal purposes, festivals, or recreation, cannabis has been an integral part of India’s religious, cultural, and social fabric. Socially, cannabis consumption is not viewed as a trigger for violent behaviour like alcohol; however, the upper class often dismissed cannabis and charas as “the poor man’s addiction.” Consequently, cannabis and bhang were legally and widely sold in India for a long time.

The 1961 International Single Convention on Narcotic Drugs classified cannabis alongside “hard drugs.” Although Indian representatives opposed this—viewing it as Western intolerance toward Indian social and religious customs—India eventually compromised by promising to limit cannabis exports. Later, the United States began a global campaign against all drugs, including cannabis, opium, charas, and hashish. India resisted this pressure for nearly 25 years. However, in the 1980s, under pressure from the lobby of pharmaceutical companies and the U.S. government, the Rajiv Gandhi government was forced to enact the NDPS Act (1985). This law prohibited the production, cultivation, possession, sale, purchase, transport, storage, or consumption of cannabis and other narcotic or psychotropic substances.

It is rumoured that hidden motives fuelled these restrictions: pressure from global cigarette manufacturers (notably Philip Morris, a prominent U.S. tobacco tycoon who was a key player behind the 1961 UN Convention), intense pressure from liquor manufacturers, and lobbying by pharma companies. The latter sought to keep cannabis away so they could profit from expensive synthetic drugs for cancer and other conditions—treatments that could otherwise be derived easily and cheaply from cannabis.

Currently, various Indian states are considering legalizing cannabis cultivation. Himachal Pradesh has granted official status to its cultivation. Madhya Pradesh is considering legalizing it for medical and industrial purposes. In 2015, Uttarakhand (formerly part of UP’s industrial scope) legalized industrial hemp. The Manipur government is also contemplating legalization for medical and industrial use.

I recall returning to my village in 1978 after Navy training, bringing a bottle of liquor to show my friends. At that time, “educated people” in the village usually meant just the school teachers. On a holiday, they invited me to a feast at the school, and I took the bottle along. A crowd gathered just to see what a liquor bottle looked like. They passed it around, staring at it intensely, remarking, “Military stuff is pure!” Despite being educated, they had never seen a bottle of liquor in their lives. They tasted just a spoonful each and exclaimed, “You can feel the path of the liquid all the way from the mouth to the stomach!”

What I mean is in 1978, villagers hadn’t even seen a bottle; today, there is a liquor shop in every village, and the youth are in its grip. Forget wedding feasts—today, people won’t even lift a dead body for a funeral without drinking! Alcohol has shattered the peace of villages and destroyed rural civilization. According to the National Family Health Survey, 30.2% of rural men consume alcohol compared to 22.7% of urban men. Despite this, instead of restrictions, liquor shops are being encouraged in every village for the sake of revenue. In 2022-23, the Odisha Government collected ₹8,767.36 crore in excise revenue from liquor, far exceeding its revised targets. Seeing the 20% annual growth in this sector, the state now aims for a ₹10,000 crore target.

If the government promotes a substance like alcohol—which is proven to cause violence—for the sake of revenue, why is there a ban on cannabis, which is tied to our faith, culture, and tradition? Despite the ban, the demand and smuggling of “Shilabati Ganja” from our state have increased phenomenally. Nowadays, the “magic” of our Shilabati is even being seen in Bollywood!

Odisha is a major producer of cannabis in the country. The state treasury is losing money due to illegal cultivation. The government spends lakhs of rupees annually just to track and destroy these crops; yet, surprisingly, the cultivation continues to grow rapidly. Reports suggest illegal farming in districts like Angul, Boudh, Deogarh, Gajapati, Kandhamal, Koraput, Malkangiri, Rayagada, Ganjam, and Sambalpur. In 2019-20 alone, cannabis was grown on about 9,567.16 acres. While a few individuals make massive profits, the government fails to stop them despite heavy spending.

Odisha has the infrastructure for cannabis production. If the government were to allow cultivation in a controlled, secure environment for medicinal use, it would not only increase state revenue but also benefit patient welfare. Furthermore, it could bolster the local tribal economy and reduce the illegal crime syndicates currently controlling the trade.

Pramod Dhal
He is a social commentator, author, and wildlife photographer from Kendrapara, Odisha. His work focuses on judicial integrity, administrative reform, and citizens’ rights. He is the author of “The Birds of Orissa: A Pictorial Encyclopedia,” for which he received the Sambad Parivesh Samman Award. Contact: +91 7008810112.

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