New Delhi: The government has ordered the defence canteens to stop buying imported goods, which is likely to include foreign liquor.
India has 4,000 defence canteens that sell liquor, electronics and other goods at discounted prices to soldiers, ex-servicemen and their families. With annual sales of over $2 billion, they make up one of the largest retail chains in the country.
An internal order from the defence ministry, reviewed by news agency Reuters, said that in future, “procurement of direct imported items shall not be undertaken”.
The October 19 order further said the issue was discussed with the Army, Air Force and Navy in May and July, and was aimed at supporting Prime Minister Narendra Modi’s Atmanirbhar Bharat campaign to promote domestic goods. A defence ministry spokesman declined to comment.
The order did not specify which products would be targeted. However, industry sources said they believed imported liquor could be on the list.
Imports make up around 6-7% of total sales value in the defence shops, according to an August research column of the government-funded Institute for Defence Studies and Analyses (IDSA). Chinese products such as diapers, vacuum cleaners, handbags and laptops, account for the bulk of it, it said.
Reuters reported in June that international liquor firms Pernod and Diageo had briefly stopped receiving orders for their imported brands from such government stores. Diageo did not respond to a request for comment, while a Pernod spokesman declined comment.
While imported liquor sales at defence stores generate only about $17 million in annual sales, the order would send a negative signal, said an executive whose company sells products at defence stores.
“The (foreign liquor) sales are small – but why would a government which wants to attract foreign investments do this? It’s a confusing, conflicting signal,” said the executive.
