thekas

Thekas (theka in singular) is a term used in the liquor distribution systems of parts of South Asia, especially India, to refer to a liquor license or permit and the associated network of licensees who distribute alcohol to retail shops. The word theka comes from local languages such as Bengali, meaning an entrusted license or permit. In common usage, the license holders and the retail outlets they supply are described as thekas.

In practice, the liquor trade operates through wholesale theka licensees who are authorized by a state excise department to supply alcohol to a defined group of retailers within a geographic area. The retailers purchase liquor from the theka holder and sell it to consumers, subject to government controls on prices, taxes, and licensing terms. The exact design of the theka system varies by state: some use quotas allocated to theka holders, while others rely on bidding, auctions, or direct allocations. The system typically distinguishes between categories such as country liquor and Indian-made foreign liquor, each with its own theka arrangements and regulatory requirements.

Criticism and reform efforts surrounding theka systems often focus on issues of rent-seeking, corruption, and fragmentation in supply chains. In response, several states have experimented with reforms such as tighter governance, transparent allocation mechanisms, or shifts toward direct licensing or auction-based models to improve efficiency and revenue collection. The theka framework remains a defining feature of liquor distribution in areas where it persists, shaping how licenses are granted, how alcohol reaches retailers, and how government revenue is collected.