A distilled beverage, spirit, or liquor is an alcoholic beverage containing ethanol that is produced by distilling (i.e., concentrating by distillation) ethanol produced by means of fermenting grain, fruit, or vegetables. Alcoholic beverage consumption patterns vary considerably among different countries and even among different ethnic groups within one country. Because India has great variety in topography, climate, vegetation, culture, and traditions, it is unsurprising that hundreds of kinds of alcoholic beverages are made and consumed. All of them, however, can be grouped into the following four broad categories; India Made Foreign Liquor (IMFL), Country Liquor or Indian Made Indian Liquor (IMIL), Illicit Liquor and Beer. IMFL are the category, created for revenue purposes, consists in Western-style distilled beverages such as whiskey, rum, vodka and brandy. These beverages are made in India under government licenses and the maximum alcohol content allowed is 42.8%. Whiskey is by far the most popular drink in this category, with hundreds of brands available, at least 20 of which have an all-India presence. Indian Made Indian Liquor (IMIL) are made from any cheap raw material available locally, e.g. sugarcane, rice, or coarse grains. Country liquor is produced in licensed distilleries and sold from authorized outlets within the same district. Common varieties of country liquor are arrack, desi sharab, and tari (toddy). Excise duties are paid, but since production costs are low the retail prices are also low. The licensing system and some governmental monitoring of the production process ensures a uniformity in alcohol content (around 40%) and basic safeguards against adulteration with other harmful intoxicants. Northern and western India are sugar producing areas, and a large amount of molasses is available in these states at a very cheap price. Consequently, molasses is the main raw ingredient for country liquor In south India, coconut and other palms are used for the same purpose. In addition, inexpensive grains are used for country liquor all over India. Country liquor is generally used for direct consumption. The people who cannot afford the prices of foreign liquor, they will go for country liquor. It has high intoxicating properties. So mostly poor class people will get full utility from the country liquor. From very beginning, man is almost habitual of drinking because at that time, there was nothing to cheers up. Now days, Due to modernization of society, there are heavy consumption of alcoholic liquors and wines too. But IMFL (Indian made foreign liquors) is too much costly than country liquor, so I M F L is not available for a common man. But being cheaper the country liquor than I M F L, so far a common public, it is quite available, and they consume a huge amount. Market Survey Indiaâ€™s alcoholic beverage market has grown steadily over the period. The industry reached the 500 million cases consumption mark in FY 2007 and million cases consumption mark in FY 2009, showcasing a rapid growth. From a 430.3 million cases market in FYâ€™2005, the market has clocked a consumption of million cases in FYâ€™2011, registering a CAGR of %. Country Liquor has the highest market share in India making currently the most consumed alcoholic beverage in India and has a commanding presence in the northern states of India. Though in the short run, country liquor is still expected to have the major market share, in the long run, their market share will decrease to ~% by FYâ€™2016 and will be overtaken by the IMFL segment. The segment is expected to sustain the market leadership to a longer period only to some extent by increasing quality, proper branding and promotions. Worldwide production of country liquors rises steadily each year, which attests the buoyant condition of the producing industries. Future prospects must therefore be extremely rosey. But whether future expansion will be along the lines already taken-with the same types of spirit being produced-on whether the lesser known drinks will become more popular, especially in the large consuming countries, is a matter for speculation sugar factory by product molasses is the main raw material for the production of alcohol (ethanol) with increased production of sugar and availability of molasses more distilleries for the production of alcohol could be set up in the sugar producing states subjects to the certification by the state Excise commissioner that sufficient quantity of molasses could be made available to the proposed unit (S) without disturbing the inter-state allocation of molasses made from that state to the deficit states by the Government from time to time.