Kerala Cancels Chalakudy Bakery’s Fruit Wine Licence, Removes Excise Official Amid Review Of Horti Wine Sales Rules

Kerala Cancels Chalakudy Bakery’s Fruit Wine Licence, Removes Excise Official Amid Review Of Horti Wine Sales Rules

Kerala has cancelled a licence allowing MRC Bakery in Chalakudy to sell fruit wine after Chief Minister VD Satheesan and Excise Minister M Liju questioned the approval. An excise official was removed, while the government reviewed rules permitting horti wine sales through bakeries and supermarkets.

K RAVEENDRANUpdated: Tuesday, October 20, 2026, 01:46 PM IST
Kerala Cancels Chalakudy Bakery’s Fruit Wine Licence, Removes Excise Official Amid Review Of Horti Wine Sales Rules
Kerala Cancels Chalakudy Bakery’s Fruit Wine Licence, Removes Excise Official Amid Review Of Horti Wine Sales Rules |

Thiruvananthapuram: Kerala’s Chalakudy residents woke up on Sunday with the promise of fruit wine alongside cakes and pastries, but the government soon pulled the cork and the wine disappeared.

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The experiment with selling fruit wine through bakeries ended almost as soon as it began, with the government cancelling a licence issued to a Chalakudy outlet and removing the excise official responsible for the approval.

The decision on Sunday followed an intervention by Chief Minister VD Satheesan and Excise Minister M Liju, who questioned how an alcoholic beverage containing about 15% alcohol could reach bakery shelves without the government’s knowledge while a new liquor policy was being prepared.

For customers, the attraction was obvious. A bottle of locally produced wine could be purchased alongside bread, biscuits and birthday cakes, without visiting a Kerala State Beverages Corporation outlet. The arrangement promised a departure from the familiar queues associated with conventional liquor purchases.

That prospect disappeared within hours of the first sales becoming public. Liju ordered the withdrawal of the permission granted to MRC Bakery at Chalakudy in Thrissur district and sought an urgent explanation from Excise Commissioner Sambasiva Rao. He also instructed the additional chief secretary handling taxation to obtain legal advice on reversing the authorisation.

Excise Deputy Commissioner CK Anilkumar, who handled the licensing process, was removed from his position. The government also initiated a review of the regulatory provisions that permitted bakeries, supermarkets and shopping centres to sell the beverage.

The minister maintained that the approval, although issued under existing rules, should not have proceeded without consulting the political leadership. He argued that allowing alcoholic drinks to be sold through ordinary food outlets raised questions extending beyond routine licensing procedures.

Horti wine is manufactured by fermenting agricultural produce, including pineapple, mango, banana and jackfruit. The initiative was originally intended to create additional markets for fruit growers and encourage small-scale processing enterprises.

The previous Left Democratic Front (LDF) government introduced rules supporting fruit-based wine production and amended the Foreign Liquor Rules in January 2024 to permit retail distribution through specified commercial establishments.

Eligible outlets included supermarkets, hypermarkets, shopping malls and bakeries meeting prescribed floor-space requirements. Consumption on the premises was prohibited, meaning a bakery could sell a bottle but could not become a neighbourhood wine bar.

The annual retail licence fee was fixed at ₹10,000, while participating establishments were entitled to a 20% sales commission.

Four manufacturing units received permission to produce horti wine under the initiative. The current government has now suspended the wider retail arrangement pending consideration of its liquor policy, expected by the end of November.

The reversal has also produced a political dispute over responsibility. Former Excise Minister MB Rajesh pointed out that the Chalakudy licence was granted during the present United Democratic Front (UDF) administration, although the enabling regulations originated under the previous LDF government.

Rajesh defended the original initiative as a measure intended to support farmers and provide a market for beverages manufactured from locally grown fruits. The controversy involves two separate decisions: the earlier government’s authorisation of a new retail category and the present administration’s approval of an individual outlet.