The Valley on the Rocks: Liquor War And The Politics Nobody Wants To Own

In Kashmir, where politics and identity are rarely separate, a debate over liquor shops has turned into a political flashpoint.

What began as a response from Chief Minister Omar Abdullah on the functioning of wine shops in the Valley snowballed into protests from rivals and allies.

Responding to questions about liquor shops operating in the Valley, Omar Abdullah said wine shops were meant only for those whose religious beliefs permitted alcohol consumption. “No government in Jammu and Kashmir, to date, has ever imposed a complete ban on these establishments. This does not imply that we wish to encourage increased consumption… it simply means that those whose religious tenets permit the use or consumption of alcohol are free to do so,” he said.

“No one is being compelled to consume alcohol. People go there by their own choice. We are not dragging anyone.”

The remarks landed badly in a deeply religious Muslim-majority Valley already grappling with anxiety over rising drug addiction among young people.

Opposition parties, religious leaders and civil society groups began demanding a complete ban, arguing that the government could not speak of a “Drug-Free J&K” while defending liquor sales.

Revenue Question

Liquor is not new to Jammu and Kashmir as 'wine shops' and bars have operated in the region for decades, especially in Jammu and in tourist-heavy pockets of Kashmir.

No government, not the National Conference (NC), the People's Democratic Party (PDP), or even the BJP-backed administration during central rule, has imposed blanket prohibition so far.

The J&K government has generated about Rs 2,152 crore in revenue from the auction of liquor shops over the past two financial years.

As much as Rs 1,03,462.49 lakh was generated in 2023–24, while Rs 1,11,816.07 lakh was earned in 2024–25. The Jammu region contributed the bulk of the revenue, generating Rs 1,96,830.06 lakh over the last two years, while the Kashmir region accounted for Rs 18,448.50 lakh.

Several districts in Kashmir including Pulwama, Shopian, Bandipora, Budgam and Kulgam had no wine shops or bars at all and generated zero liquor revenue over three years. 

The controversy became politically awkward for the ruling party when the demand for prohibition came from within its own ranks.

Last year, NC MLA Ahsan Pardesi submitted a Private Member’s Bill seeking a ban on the advertisement, sale, purchase, consumption and production of alcohol across Jammu and Kashmir.

“Islam doesn’t allow this,” Pardesi said. “If liquor can be banned in a state like Bihar, then why can’t it be done in Kashmir, which is a Muslim-majority region?”

He clarified that the bill specifically mentioned “Kashmir and Muslim-dominated areas,” exposing the sensitive communal and regional dimensions of the issue.

The bill revealed the contradictions within the ruling party itself. When the matter reached the Assembly, Speaker Abdur Rahim Rather acknowledged that while several members supported prohibition, there were also voices against it, preventing any clear decision.

Rather also recalled his own tenure as Finance Minister, saying he had resisted issuing liquor licences during his years in office.

The loudest demands for prohibition came from the PDP and the BJP, though both parties were accused of political opportunism.

Waheed ur Rehman Para dismissed the argument that tourism depended on liquor sales, citing Gujarat as an example, he said the dry state attracted nearly 18.59 crore tourists last year, including over 23 lakh foreign visitors, while Jammu and Kashmir saw around three million tourists in 2024, with only about 43,000 foreign arrivals.

The PDP would soon introduce its own bill on prohibition, he told Outlook.

Iltija Mufti launched a signature campaign against liquor sales and accused Omar Abdullah of making an “expected U-turn.”

She argued that if states like Bihar and Gujarat could enforce prohibition, Jammu and Kashmir could do the same. Yet critics pointed out that neither Mufti Mohammad Sayeed nor Mehbooba Mufti had pushed for prohibition while in power.

The BJP escalated matters further by taking protests to Srinagar’s streets. J&K BJP spokesperson Altaf Thakur marched party workers towards the Chief Minister’s residence, accusing the NC government of “drowning the youth in liquor” and threatening to “lock down” liquor stores if the government failed to act. 

Identity Politics

Kashmir’s chief cleric Mirwaiz Umar Farooq questioned why Jammu and Kashmir could not follow Gujarat’s model of prohibition. Tariq Ghani of the Kashmir Chamber of Commerce argued that alcohol had “destroyed countless families” and accused the government of contradicting its own anti-drug campaign.

Even Omar Abdullah’s allies appeared uneasy, like Srinagar MP Aga Ruhullah Mehdi criticised the Chief Minister’s response as “arrogant, unethical and illogical,” saying the NC had promised stricter regulation of liquor shops during elections.

Earlier, replying to a question in the Assembly, it stated there was “no proposal” to declare Jammu and Kashmir a dry Union Territory.

Officials argued that prohibition would encourage smuggling, illegal distillation and black-market trade while also damaging jobs and revenue.

The government also noted that enforcement agencies had already seized over 16,300 litres of illicit liquor and destroyed more than 1.36 million kilograms of raw material used for illegal distillation between 2024–25 and January 2026, suggesting a thriving underground economy even without a ban. The government also confirmed it had “no proposal to open new wine shops during 2026–27”.

Omar Abdullah said his comments were being distorted and insisted that his government had neither opened new liquor shops nor promoted alcohol consumption. NC leader Tanvir Sadiq added that the government was aware of public sentiment on the issue and appropriate action would be taken soon.

Summing up the government’s dilemma, Farooq Abdullah said alcohol could be banned “in two minutes” if the Centre compensated J&K for the revenue loss. He recalled that even Sheikh Abdullah had made the same argument decades ago to Morarji Desai.