Ahmedabad: In a state where prohibition laws create a unique backdrop for alcohol consumption, Gujarat’s liquor health permits — a system designed to provide exemptions for medical reasons — have hit a plateau, at least over the past three years. The number of active liquor health permits in the state has barely budged over the past three years, increasing by just 3.5% in the last year to reach approximately 45,000 permit holders in 2024, suggests data provided by sources in the state govt. Over a two-year period, this rise is marginally higher at 9.9%.
Sources in the state govt attribute this stagnation to prohibitive costs, delays in the permit issuance process, and the financial burden of maintaining an active permit. Obtaining a liquor health permit in Gujarat is an expensive affair, beginning with the upfront cost of Rs 4,000 — split equally between application and medical examination fees. On top of this, an annual Rs 2,000 is required to renew the permit.
In fact, according to data tabled in the Gujarat legislative assembly earlier this year, the state govt earned Rs 38.56 crore by issuing fresh permits and renewing existing ones. “However, the most significant cost stems from the mandatory medical certification by designated area medical boards (AMBs), which also levy a hefty ‘Patient Welfare Fund.’ This additional one-time charge varies by district and ranges from Rs 10,000 to a staggering Rs 40,000,” said a source.
This pricing structure dissuades many potential applicants, particularly moderate drinkers, from seeking permits. “The costs are simply too high for those who consume alcohol occasionally or for limited medical reasons. The expense outweighs the perceived benefit,” said a source familiar with the permit issuance process. These financial barriers are compounded by procedural delays, with fresh applications and renewal processes frequently taking longer than expected. “Delays in permit approvals have created a backlog that discourages new applicants,” the source added.
A closer look at district-level data reveals stark variations in permit holder trends. Ahmedabad remains the leader with 14,000 active permit holders in 2024, marking a modest 4% growth over the previous year. However, other districts tell a more diverse story. Surat saw a decline of 2.6% in permit holders, with its numbers dropping from 9,238 in 2023 to 9,000 in 2024. Rajkot’s figures also shrank by 4.5%, and Gandhinagar registered the steepest fall, with a 13.6% drop in active permits. In contrast, Vadodara showed a robust 16.7% increase, and Jamnagar followed with a 7.9% rise.
Beyond the financial strain, the higher cost of alcohol in permit stores also impacts permit growth. Liquor prices in Gujarat are significantly higher than in neighbouring states due to steep taxes. “Even after obtaining a permit, the premium pricing discourages regular consumption, making people question whether the cost is worth the hassle,” said a liquor permit store owner.
Box:
Health permit holders in Gujarat
Year Active Permits
2020 27,452
2021 37,421
2022 40,921
2023 43,470
2024 45,000
Box
District-wise Numbers
District 2023 2024 % Change
Ahmedabad 13,456 14,000 4
Surat 9,238 9,000 -2.6
Rajkot 4,502 4,300 -4.5
Vadodara 2,743 3,200 16.7
Jamnagar 2,039 2,200 7.9
Gandhinagar 1,851 1,600 -13.6
Source: Govt of Gujarat