Alcohol use in India goes back to Vedic ages. The scriptures talks about techniques to be used in fermentation etc., To date, not only has the consumption of alcohol been continued but it is an integral part of the Ayurvedic system of medicine. Carew & Co. Ltd had set up the first distillery in 1805 in Kanpur for the army barracks.
The distillery industry today consists broadly of two parts, one potable liquor and the industrial alcohol including anhydrous ethanol for blending with petrol. The potable industry producing Indian Made Foreign Liquor(IMFL) and Country Liquor has a steady but limited demand with a growth rate of about 7-10 per cent per annum. Indian Liquor industry is today exporting a sizable quantity of Indian Liquor products to other countries.
The alcohol industry has a total installed capacity of 4200 million litres of alcohol in a year. However, the licensed capacity is concentrated in three states of U.P., Maharashtra and Tamilnadu . World over ethanol is mixed up with petrol and the percentage varies across the world. It is highest in California where the percentage is 30%-40% and in Brazil 20-25%. In India, the percentage is 5% which shows the untapped potential in India.
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