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VIZAGAPATAM account Mr. Minchin was allowed to sub-rent Gunupur, Ráyagada and the Sálúr and Pálkonda Agencies on the same terms as the toddy farms. Numerous other difficulties also cropped up,1 chief among them being the smuggling of ippa arrack from the Agency into the interior taluks at the foot of the hills. In 1875 another triennial lease was granted to Mr. Minchin for the arrack supply, but the toddy farms were sold separately. Smuggling continued and eventually led to the entire break-down of the excise system in the interior taluks. They were accordingly first leased out to Mr. Minchin and supplied on the old system of scattered stills, and afterwards, in 1878-79, rented out by public auction in four2 -farms to others, who manufactured two strengths of rice or ippa liquor (30° and 60° underproof respectively) at sanctioned stills and sold it at fixed shops. This step only transferred, and did not abolish, the smuggling: it was now systematically carried on from this rented belt into the littoral taluks in quart bottles, the provisions of the then abkári law making it no offence to transport arrack in quantities of one quart or less. This system was overthrown by the introduction of the existing Abkári Act, which not only stopped 'the quart system',as it was called, but rendered the salt preventive staff available for the enforcement of the abkári law. At the beginning of 1888 the excise system was once more tried in these inland taluks, but the right of supply was given to native renters both there and in the littoral taluks, and Mr. Minchin's connection with the district, which had lasted for sixteen years, ceased.'3

The supply of arrack to the district has for the last twelve years been in the hands of a native firm, known as the Vizagapatam Commercial Corporation, which makes the spirit from sugar-cane jaggery at their distillery at the district head-quarters. Since 1890 the issue of rice spirit has been discontinued, and this has done much to check the smuggling from the Agency tracts which was formerly such a difficulty, as illicit liquor can now be recognized at once. The system of supply of country spirit at present in force is known as the contract distillery supply system, under 190