The most common and most likely answer to this crossword clue is the 5 letter word HOOCH
I've seen this crossword clue in The Times
H
O
O
C
H
More clues leading to the result HOOCH
- CH2O2 processed into alcohol
- Well up above church, moonshine
- Illicit liquor from house overlooking old church
- Inferior liquor husband loves — cold and hot
- Leaders of Home Office order cheap home-made booze
- Stop old companion making illegal liquor
- Drink a couple of rounds with companion after end of lunch
- Spirited Dutch painter?
- Liquor reportedly which person’s taken to church
- Caught delving into theosophy off and on: ‘It’s moonshine!’
Buddy explains!

The straight part
We know that "Inferior liquor" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case inferior liquor = hooch.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does HOOCH mean?
HOOCH noun- Alcoholic liquor, especially inferior or illicit whisky.
- A thatched hut, CHU, or any simple dwelling.