Kerala liquor tax proposal sparks Congress infighting
August 4, 2026
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Home Bharat

Keralam: CM Satheeshan’s new liquor policy proposal triggers internal conflict within Congress

The Kerala government's proposal to reduce taxes on low-potency liquor has triggered sharp divisions within the ruling Congress, the Cabinet and the UDF alliance, with senior leaders and Christian organisations openly questioning the move.

T SatisanT Satisan
Jun 24, 2026, 04:00 pm IST
in Bharat, Kerala
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Keralam Chief Minister VD Satheeshan (Left Side)

Keralam Chief Minister VD Satheeshan (Left Side)

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After coming to power, promoting alcohol consumption to keep the people distracted from real issues, public discourse and criticism of the elected government is one of the standard templates of Congress governments in the states. In Keralam, the Congress government led by Chief Minister V.D. Satheeshan, which returned to power after a decade, has sparked discord and internal conflict within the party by mulling a reduction in taxes on low-potency liquor.

The proposed tax reduction for low-potency liquor has triggered a conflict within the Congress, the Cabinet and the ruling Congress-led United Democratic Front (UDF) alliance. More critics are coming out against the new policy, arguing that it will encourage alcohol consumption.

The proposal was included in the maiden Budget presented by Chief Minister V.D. Satheeshan, who also holds the Finance portfolio. Reports suggest that even Excise Minister M. Liju, a senior Congress leader, was not consulted before the proposal was incorporated into the Budget.

Home Minister and senior Congress leader Ramesh Chennithala fired the first salvos on June 22. He was followed by All India Congress Committee (AICC) General Secretary (Organisation) K.C. Venugopal, who reportedly lost the chief ministership despite enjoying the support of a majority of Congress MLAs.

Meanwhile, Excise Minister M. Liju brushed aside the Chief Minister’s remarks, stating that the Excise Department had not taken any such policy decision and that it had not been decided whether low-potency liquor would be sold.

Also Read: Next Radical Move by Muslim League in Kerala? Plants Jamaat-e-Islami Men in Congress Ministers’ Offices; Youth Protests

K.C. Venugopal stated that the government has a responsibility to allay the anxieties arising from the abkari policy outlined in the Budget. His statement was viewed as a planned attack on Chief Minister V.D. Satheeshan.

Ramesh Chennithala reportedly went to the extent of stating that no final decision had been taken regarding the abkari policy. He added that the Budget proposals could be amended if necessary.

VM Sudheeran, former Kerala Pradesh Congress Committee president and one of the most senior Congress leaders in the state, launched sharp criticism against the Budget proposals. He said the ‘pro-alcohol’ Budget proposal was contrary to UDF policies and should be withdrawn. He also sent a detailed letter to the Chief Minister explaining his strong objections.

The Kerala Catholic Bishop Conference (KCBC), the Orthodox Church and several other Christian groups have also come out with severe criticism of the new abkari policy.

Critics argue that the UDF, which had accused the previous LDF government of pursuing a corrupt abkari policy, is now following a policy favourable to the liquor lobby after coming to power. They contend that the public views this as a double standard.

Topics: Ramesh ChennithalaV.D. SatheeshanAbkari PolicyCongresskeralaLiquor policyudfK.C Venugopal
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