TN mulls TASMAC liquor price hike, retail rates may rise next week

Chennai, July 8 (IANS) The Tamil Nadu government is considering a hike in the retail prices of liquor and beer sold through state-run Tamil Nadu State Marketing Corporation (TASMAC) outlets, with an official announcement likely within the next two days. If approved, the revised rates are expected to come into effect from next week.

Tamil Nadu State Marketing Corporation (TASMAC), the state’s sole retailer of alcoholic beverages, currently operates 4,048 liquor outlets across the state. These stores collectively generate an average daily revenue of around Rs 150 crore through the sale of Indian Made Foreign Liquor (IMFL), beer, wine and imported liquor, making alcohol sales one of the state’s largest revenue streams.

According to TASMAC officials, the proposed revision would increase the prices of regular and mid-range liquor brands as well as beer by Rs 10 to Rs 50 per bottle, depending on the category.

Popular IMFL brands, including whisky, brandy, rum and vodka, are expected to be covered under the proposed price revision.

The proposal came up for discussion during a recent meeting of the TASMAC Management Board. However, officials said the increase has not yet been finalised, and the exact extent of the price revision is still under consideration.

A high-level meeting is expected to be held either today or tomorrow to take a final decision, following which an official announcement is likely.

If implemented, this will be the first revision in liquor prices in Tamil Nadu since February 1, 2024.

Officials said liquor manufacturers and beer producers have been pressing the government for a retail price revision after the state imposed a surcharge on every carton of IMFL and beer supplied to TASMAC.

Manufacturers argued that rising production and distribution costs, coupled with the surcharge, had increased their financial burden and sought higher retail prices to offset the additional expenses.

Although the government did not immediately accept the demand, the issue was subsequently discussed by the TASMAC management committee.

The meeting also reportedly examined the possibility of entrusting retail liquor sales to private companies in the future.

However, the Finance Department is understood to have opposed the proposal, arguing that allowing private participation in retail sales could adversely affect the state’s liquor revenue.

Officials indicated that if the proposal receives final approval, the revised prices are expected to be implemented across all TASMAC outlets from next week.

–IANS

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