Why should government manufacture or sell liquor? It is not the govt's job. If people want to drink they can do so with branded alcohol. Some company can even start manufacturing a cheap liquor. But it should not be govt's business.
Controlling illicit arrack is govt's business. I think people will also stop drinking it after this news. Probably govt can provide test kits to these manufacturers and collect tax from them.
Legalize the small business of brewing alcohol based beverages as a local business.