Liquor prices goes up in TN from Wednesday

State govt is expected to get an additional Rs 2,500 cr with the increase

The liquor prices in Tamil Nadu is going up from today, in tune with the state government's decision recently to increase the upper level ceiling on excise duty on liquor. The State government is planning to add around Rs 2,500 crore to the revenue it gets from the liquor sales in the State.

The prices are expected to go up in a range between Rs 5-60 per bottle compared to the existing prices and the new prices would be reaching the retail shops of The Tamil Nadu State Marketing Corporation (Tasmac), which has the responsibility of the wholesale and retail supply of liquor in the State, in a week's time.

While the price of ordinary, and medium bottle of liqour is going up by Rs 10, bottles with higher price would see an increase of Rs 20-40 per bottle.

As reported earlier, the Tamil Nadu government has introduced an amendment bill, Tamilnadu Prohibition (Amendment) Act, 2014, which sought to enhance the maximum rate of excise duty in respect of ordinary, medium and premium brands to Rs 250, Rs 300 and Rs 500 respectively per proof litre of Indian-made foreign liquor.

There are 6,800 Tasmac retail vending shops in the state. The provisional revenue from liquor sales through the Tasmac amounted to Rs 21,641 crore during 2013-14, as against Rs 21,680.67 crore in the previous year. Revenues during 2011-12 stood at Rs 18,081.16 crore, against Rs 14,965.42 crore in 2010-11.

Tasmac, a company owned by the state government, has a monopoly over wholesale and retail vending of alcoholic beverages in TN. Tasmac was established in 1983 by then chief minister M G Ramachandran for wholesale vending of alcohol in Tamil Nadu. In 2001, prohibition was lifted again and Tasmac became the wholesale monopoly for alcohol. For retail vending, the state auctioned off licences for running liquor shops and bar.

By 2004, all private outlets selling alcohol were either shut down or taken over by the company. This monopoly established by the AIADMK government of J Jayalalithaa came into effect from 2003. The DMK government, which took power in 2006, did not revise its predecessor's policy.