State excise dept to overhaul track & trace system to combat liquor smuggling
The system, currently reliant on QR codes, has faced criticism for inefficiencies, especially with reports of smugglers bypassing it to supply liquor to bootleggers.
In a move aimed at curbing the rampant smuggling of liquor and improving the state’s existing monitoring system, the Punjab excise department has decided to overhaul its current track and trace system, which has been found to have significant flaws. The system, currently reliant on QR codes, has faced criticism for inefficiencies, especially with reports of smugglers bypassing it to supply liquor to bootleggers.
To address these issues, the excise department has reached out to the Punjab Infrastructure Development Board (PIDB), requesting them to finalise the procedure for hiring a new vendor to implement an improved end-to-end online and offline track and trace system. On Monday, PIDB officials held a detailed meeting to discuss the process of selecting the company responsible for executing this crucial project.
A senior officer in the excise department said that the new system will leverage more advanced and secure technologies to enhance the safety, authenticity and overall effectiveness of the liquor tracking process. “Many new technologies have emerged that can track liquor bottles to the end user more accurately. The current technology is now outdated. Our goal is to make the system more automated, time-efficient and secure,” the official stated.
The current system involves placing excise adhesive labels (EALs) on all liquor bottles sold in Punjab. These labels ensure that government duties, fees and levies have been properly paid for each bottle or can.
Additionally, a separate QR code sticker is pasted on each bottle to allow for the tracking and tracing of liquor as it moves through the supply chain from distillery to end consumer. The QR code allows excise department officials to verify the authenticity of the liquor, checking whether bottles are being sold legally or are part of illicit supply chains.
In a bid to improve transparency, the excise department also launched a mobile application that allows consumers to scan the QR code on liquor bottles to view detailed information about the product. This includes the bottle’s label code, the name of the distiller or bottler, the brand name, the alcohol content, packaging quantity and the manufacturing date.
Despite the system’s apparent benefits, there have been significant challenges. Senior excise officials said that many bottles reach consumers with or without QR codes deliberately removed or tampered with, allowing bootleggers to sell smuggled liquor. This not only causes substantial financial losses for the state but also contributes to inter-state smuggling, exacerbating law enforcement challenges.
“Smuggling operations, particularly those involving the removal or manipulation of QR codes, have created major issues, both financially and legally,” said an excise official, explaining that the department is determined to strengthen the system.
As part of the track and trace system overhaul, the excise department will engage a transaction advisor from PIDB’s panel to guide the project’s development and execution. PIDB will serve as the nodal agency responsible for issuing the notice of award and signing the service level agreement (SLA) with the selected vendor.
Currently, Punjab regulates 15 distilleries, 30 bottling plants and 4 breweries, all of which manufacture a wide range of alcoholic beverages, including Indian-made foreign liquor (IMFL), beer and various spirits. While much of the liquor produced is consumed within Punjab, a significant portion is exported to other states and even abroad.
