The prohibition on the sale and consumption of alcohol in Bihar, implemented in 2016, has had several significant impacts, both positive and negative. Two key impacts are:
Positive Social Impact: There have been widely reported positive social outcomes, particularly for women and families in poorer households. These include:
A significant reduction in domestic violence.
Increased household savings, as money previously spent on alcohol is now used for food, education, and other necessities.
Negative Economic Impact and Rise of Illegal Trade: Prohibition has had two major negative consequences:
A substantial loss of excise duty revenue for the state government.
The emergence of a large-scale black market for liquor, leading to smuggling from neighboring states and the proliferation of illicitly brewed, often toxic, alcohol (hooch), which has caused numerous deaths.