After three years, the Tamil Nadu State Marketing Corporation Ltd (Tasmac) will be increasing liquor prices across the State. The increase varies from ₹10 to ₹12 (per 180 ml). There will be no increase in beer prices.
A senior government official told The Hindu: “The minutes of the meeting and the order is ready and will be issued any time this week. We are waiting for the final approval to release the order.” He added that this was a routine hike which happened once in three years. The Tamil Nadu government had increased liquor prices in November 2014.
In the ordinary category, a consumer would have to pay ₹100 for a 180 ml, up by ₹12. In the medium category, the price has been increased by ₹10 for a 180 ml bottle, pushing up the price to ₹110. The premium liquor category with a price range of ₹120 to ₹380 (depending on the brand) will see an increase of ₹10 (per 180 ml). As per quality, liquor is divided into three categories: Ordinary, medium and premium. “The price has been fixed similar to 2014 and 2011. We have followed the same pattern,” the government official said.
Shore up revenue
The price increase will help Tasmac increase its annual revenue by ₹2,250 crore. In 2016-17, the government revenue earned through sale of liquor in Tamil Nadu stood at ₹26,995 crore (Excise Revenue ₹6,248 crore and VAT (sales tax) was ₹20,747 crore).
Analysts, who track the liquor industry in Tamil Nadu, said that the increase in price will not impact consumption or sales. One of them, said: “If you look at the hike in 2014, there was a dip in sales during the initial few weeks but sales picked up later. With the festive season around, sales will be good,” he added.
On an average Tasmac, the cash-cow of the Tamil Nadu government, sells liquor worth about ₹70 crore a day on weekdays. During weekends and festive days, this figure goes up to ₹100 crore.
Reacting to the proposed increase in prices, DMK working president M.K. Stalin, on Wednesday, said the move exposed the contradiction in the government’s stand. On the one hand, the government had been saying it would close the Tasmac shops in a phased manner. On the other, it was hiking the prices, he pointed out.
