Securing Liquor Supply Chains in India: Digital Locks and GPS Tracking

In India, each state has the power to control and regulate its own liquor trade. Given that the country comprises 29 states and seven union territories, each with their own set of laws, this presents a major challenge for the alcoholic beverage industry – a challenge that is further exacerbated by the limitations placed on the movement of alcohol between states.

Due to these diversified laws, interstate liquor smuggling has developed into a lucrative activity, exemplifying how variations in laws, norms, and restrictions among state excise departments can have far-reaching financial repercussions. Added to this are ongoing concerns with the diversion of spirits for making illicit or duty-evaded liquor, which has frequently led to unfortunate incidents involving the consumption of hooch (moonshine).

In response to these challenges, several state excise departments are implementing solutions to safeguard their end-to-end supply chains. These include the use of geo-tagged ‘digital locks’ for liquor-carrying tankers.