Excise Dept. approves production of new alcoholic beverages locally for export markets

14 January 2023 04:34 am Views - 316

• Two firms have already received approval
• Calls to step up efforts to promote locally manufactured toddy
• Proposal received from leading corporate to host toddy festival targeting foreign consumers

By Nishel Fernando 

With the aim to boost foreign exchange earnings from locally produced alcoholic beverages, the Excise Department has granted approval to produce cider and milk punch, with local ingredients, for export markets. Speaking at the 110th anniversary celebrations of the Excise Department held in Rajagriya this Thursday, State Minister of Finance Ranjith Siyambalapitiya stressed that the Excise Department and relevant authorities should facilitate exports of locally produced alcoholic beverages in demand by clearing legal hurdles. Accordingly, he noted that the Excise Department approved two firms to produce popular fruit-based alcoholic beverage cider, using local fruits and milk-based alcoholic beverage milk punch, targeting export markets.

In 2022, the country exported US $ 21 million worth of alcoholic beverages to 35 countries, slightly up from US $ 20 million in export earnings recorded in 2020. In particular, Siyambalapitiya highlighted that locally produced coconut, kithul and palmyrah toddy are becoming popular globally.

To further promote locally manufactured toddies, a leading local corporate has proposed to organise a toddy festival targeting foreign consumers. Further, Siyambalapitiya also opined that suitable import substitutions are needed to curb forex outflows through foreign liquor imports while noting that the country imported over US $ 2 million worth of wine and whisky alone in 2022 despite the economic crisis.

According to Siyambalapitiya, legal alcohol consumption in the country has declined by 20-30 percent in recent months, owing to the economic crisis and high taxation.

However, the Excise Department was able to collect Rs.170 billion in taxes in 2022, closer to the Rs.185 billion target set by the government, which is mainly due to the implementation of a foolproof sticker and labelling system.

For this year, the government has set a daunting Rs.217 billion revenue target for the Excise Department.