T E Narasimhan: The politics, possible ramifications of prohibition

The anti-liquor movement is becoming stronger. The state Opposition has latched on to it even as a blanket ban seems impractical

The anti-liquor movement in Tamil Nadu is becoming stronger as more political parties and student groups join the agitation seeking prohibition in a state that earns one third of its revenue from liquor sales. The question is whether Opposition parties have taken up the issue only because Assembly polls are just a year away.

A week ago, Sasi Perumal, a Gandhian activist, died during a protest against a liquor shop run by the Tamil Nadu State Marketing Corporation Limited (Tasmac). Perumal had climbed atop a mobile tower in Unnamalai town near Marthandam urging the government to shift the shop as it was purportedly situated near educational institutions and places of worship.

Following his death, anti-liquor protests spiralled out of control at some places as police lathi-charged agitators. Several Tasmac shops were vandalised and a Tasmac employee in Salem was killed in a petrol bomb attack.

The agitations intensified after news broke that the state government was planning to open more "elite" Tasmac shops - exclusive outlets for imported liquor.

Economics of Tasmac

Tasmac was set up in 1983 as the sole agency for wholesale liquor sales. In 2003, then Chief Minister Jayalalithaa entrusted retail sales too, to Tasmac.

There are 6,814 Tasmac outlets in the state. Revenues from these shops swelled from Rs 3,639 crore in 2003-04 to Rs 21,680.67 crore in 2012-13; in 2014-15 the figure reached Rs 26,188 crore; for 2015-16 the target is around Rs 30,000 crore. About seven million people, or a little less than 10 per cent of the state's population, consume liquor at Tasmac outlets every day.

Barring the ruling All India Anna Dravida Munnetra Kazhagam (AIDMK), all political parties - be it the Dravida Munnetra Kazhagam (DMK), Bharatiya Janata Party, Congress, Commu-nist Party of India or DMDK - are backing the agitations. Opposition parties, except the DMK, called for a state-wide bandh last week; DMK has announced a state-wide protest next week.

Perumal's family conducted the last rites at his native village E Mettukkadu on Friday. The DMK is said to have given Rs 10 lakh in cash and MDMK leader Vaiko Rs 5 lakh in cash to Perumal's family. DMK and MDMK leaders visited the village and convinced Perumal's eldest son Vivek to give up his six-day fast seeking prohibition.

DMK chief M Karunanidhi has petitioned Governor K Rosaiah for a probe into Perumal's death and an alleged attack on student protesters demanding prohibition.

The ruling AIADMK has called the anti-liquor movement an "election gimmick" and questioned why its main rival, the DMK, did not enforce prohibition during its regime. And so a blame game has begun as to who implemented prohibition and who lifted it.

State government officials said prohibition might not be a practical solution to the liquor problem. If implemented, it would cause revenue loss to the state government, prompt free flow of liquor from neighbouring states and spur illicit liquor production leading to hooch tragedies.

Political observers say, irrespective of the party in power, its leaders benefit from the state's liquor business. Tamil Nadu has had an on-off relationship with prohibition since Salem became the first district in India to ban liquor in 1937.

Karunanidhi, who as Chief Minister lifted prohibition in 1971, said he was compelled to do so on account of the state's financial situation. But, he added, it was his government which implemented liquor ban in 1974; then the M G Ramachandran-led AIADMK government came to power and opened toddy shops in 1981.

Karunanidhi was responding to state Prohibition and Excise Minister Natham R Viswanathan's question as to why the DMK did not go for prohibition, when it was ruling the state. Vishwanathan also questioned why prohibition was not in place in BJP- and Congress-ruled states. The minister hinted that even though alcohol was banned in Gujarat, people there were getting liquor at their doorsteps.

Chief Minister J Jayalalithaa announced Rs 7 lakh as compensation from the Chief Minister's Relief Fund to the family of the Tasmac employee, who was killed in the petrol bomb attack, and provided a job to his wife. However, she remained silent about the overall situation; there was also no word on Perumal's death. However she did hold a meeting with senior police officers, bureacurats and ministers.

Interestingly, Tasmac employees' unions are supporting the prohibition agitation. They are demanding that they be re-employed elsewhere before the ban on alcohol is implemented.

Paattali Makkal Katchi leader S Ramadoss said his party would stall the government's plan to open 452 "elite" Tasmac shops. "Partial measures such as decreasing the number of hours of sale and closing shops near places of worship, schools and colleges will not be sufficient," he said. "If the number of hours is reduced it will only lead to stocking of liquor, besides selling it at higher prices beyond regular hours."

Meanwhile Satta Panchayat, an organisation supporting prohibition, has released a book in which it describes an alternative revenue model to the tune of Rs 5 lakh crore as well as employment opportunities for 200,000 people.