Punjab permits distilleries to manufacture and supply sanitisers

In response to the public health emergency created by the COVID-19 pandemic, the Government of Punjab permitted distilleries across the state to manufacture and supply alcohol-based hand sanitisers to meet the unprecedented surge in demand. This decision, taken in early 2020, was part of a larger national strategy to ensure the adequate availability of essential hygiene products during the lockdown and to curb the spread of the virus.

Background and Context

With the outbreak of COVID-19 in India in March 2020, there was a sharp increase in the demand for hand sanitisers as a preventive health measure. The sudden spike led to shortages and price inflation, affecting both urban and rural consumers. At that time, the production capacity of existing pharmaceutical and cosmetic manufacturers was insufficient to meet the public requirement.
Punjab, being one of the largest producers of ethyl alcohol through its network of distilleries, was in a strategic position to bridge this supply gap. Ethanol, a primary raw material for hand sanitiser production, is abundantly available in the state due to its large distillation and sugar-milling sector. Recognising this potential, the state government decided to repurpose the industrial capacity of its distilleries to produce sanitisers on an emergency basis.

Government Decision and Regulatory Measures

The Punjab Government, through the Excise and Taxation Department, issued a notification in March 2020 permitting all licensed distilleries and ethanol-producing units to start manufacturing hand sanitisers. The move was authorised under the Punjab Excise Act and coordinated with the Food and Drug Administration (FDA) and Health Department to ensure product safety and compliance with prescribed standards.
Key features of the government’s decision included:

• Temporary Relaxation of Licensing Norms: Distilleries were allowed to manufacture sanitisers without obtaining new pharmaceutical licences, provided they adhered to prescribed formulations and safety norms.
• Coordination with Central Guidelines: The state aligned its policy with the Central Government’s advisory under the Ministry of Consumer Affairs and the World Health Organization (WHO) standards for alcohol-based sanitisers (minimum 60% ethanol content).
• Quality and Safety Controls: The Health Department and State Drug Controller were tasked with monitoring production quality to ensure the sanitisers were safe and effective for public use.
• Price Regulation: The government fixed a reasonable price ceiling to prevent profiteering during the pandemic.

Production and Distribution

Soon after permission was granted, several major distilleries in Punjab—such as Patiala Distillery, Jagatjit Industries, Malbros International, and Pioneer Industries—converted parts of their facilities to produce sanitisers. Production began within days, and the first consignments were distributed to hospitals, government offices, and local markets.
The Excise Department facilitated the supply chain by granting movement permissions for ethanol, containers, and packaging materials despite lockdown restrictions. District administrations were authorised to oversee the local distribution and ensure availability across both urban and rural areas.
To prioritise essential needs, the state initially directed that sanitisers produced by distilleries be supplied to:

• Hospitals and healthcare institutions
• Police and frontline workers
• Government offices and public utility departments
• Local markets and chemists for retail supply

Impact and Outcomes

The initiative achieved multiple objectives during the pandemic:

• Rapid Augmentation of Supply: Within a short period, the production of sanitisers in Punjab increased exponentially, helping to eliminate shortages.
• Support for Public Health Infrastructure: Hospitals and government facilities received timely supplies of sanitising agents to maintain hygiene standards.
• Industrial Diversification: The decision allowed distilleries to maintain operational activity during the lockdown, supporting employment and revenue streams.
• Reduction in Price Volatility: With local manufacturing, the cost of hand sanitisers stabilised, making them affordable for the general public.

This policy move also reflected Punjab’s adaptive industrial strategy, where existing manufacturing capacities were leveraged for emergency public needs without lengthy bureaucratic procedures.

Compliance and Monitoring

To maintain accountability, the Punjab Government required all participating distilleries to:

• Maintain records of production and distribution quantities.
• Submit periodic reports to the Excise and Health Departments.
• Use denatured alcohol and approved chemical agents such as hydrogen peroxide and glycerol in WHO-recommended proportions.
• Display manufacturing details, batch numbers, and expiry dates on each product label.

District magistrates and drug inspectors were empowered to conduct surprise checks to ensure compliance with safety and quality norms. Any violations—such as diversion of ethanol for non-medical purposes—were liable for strict penal action under the Punjab Excise Act and Drugs and Cosmetics Act.

Coordination with National Efforts

Punjab’s decision was aligned with the broader national response coordinated by the Ministry of Health and Family Welfare and Department of Chemicals and Petrochemicals, which encouraged states to expand local sanitiser production by using existing distillery infrastructure.
The initiative was also supported by the Indian Sugar Mills Association (ISMA) and All India Distillers’ Association (AIDA), which facilitated the supply of technical-grade ethanol and standardised production practices across the country.

Economic and Social Benefits

Apart from meeting public health needs, the permission to manufacture sanitisers offered significant economic relief to Punjab’s industrial sector during the lockdown period. Distilleries, which otherwise faced a decline in demand for alcoholic beverages due to restrictions, were able to sustain operations by shifting to sanitiser production. This transition safeguarded thousands of jobs and maintained industrial continuity.
Furthermore, local production and supply reduced dependency on imported products, contributing to self-reliance in essential goods under the national Atmanirbhar Bharat framework.