Som Distilleries Licence Cancelled Over Child Labour Concerns

The Madhya Pradesh government has suspended the licence of Som Distilleries on Wednesday due to concerns about child labour. The decision followed the rescue of over 50 children, including 20 girls, from a liquor factory in Raisen district. Som Distilleries blamed contractors of its associate company for the child labour issues on Monday and terminated the vendor's services. The police said they are investigating.

Police in Madhya Pradesh launched an investigation into Som after the National Commission for Protection of Child Rights (NCPCR) last week found 39 boys and 19 girls working at the factory. The agency also released photos of children's hands it said showed burns due to contact with chemicals.

"They were enrolled in a school and would come in school buses. So people thought they were going to the school, but they worked in the liquor factory," NCPCR Chief Priyank Kanoongo said on Wednesday.

In a statement to the stock exchange earlier this week, Som Distilleries and Breweries Ltd said the concerns are related to a plant run by its "associate private limited company" which used labour supplied by contractors, who may not have carried out proper age verification checks.

Their services have been terminated, Som said, adding it is cooperating with the authorities. The company's shares have fallen 7 per cent this week.

Som is one of the smaller distilleries in India's thriving alcohol industry where both foreign and domestic players operate. Its website describes it as an "internationally acclaimed brand" available in over 20 markets including the United States, New Zealand and the United Kingdom.