Alcohol industry and economic implications in Tamilnadu
Recently I came across news about liquor sales hitting several crores in a matter of a few hours amid the covid-19 lockdown in India. I started paying attention to the dynamics and regulations of alcohol industry in my native state Tamilnadu.
I know what alcohol lovers might think now. But this article isn’t about alcohol drinkers
I am gonna lay down facts about alcohol industry in Tamilnadu
Fact #1: As of today, liquor retail vending in Tamilnadu is a monopoly. Alcohol manufacturing is an oligopoly.
Fact #2: There is only one license issued for retail liquor vending in Tamil Nadu. It’s issued for none other than Tamil Nadu State Marketing Corporation (TASMAC)
Fact #3: There are different types of liquor licenses issued by the government of Tamil Nadu. But TASMAC is the only entity that holds a license for vending liquor throughout the state.
Fact #4: Anyone can apply for a license to sell liquor but the license which TASMAC holds right now costs more than R.S 250 crores per year ($33 million approx).
Fact #5: Above fact says anyone can apply. It doesn’t necessarily mean it will be approved. More info can be found here.
Fact #6: Liquor sales and consumption don’t exactly boost the economy.
Fact #7: According to TASMAC website there are 11 distilleries/breweries that supply alcohol. It means most of the revenue from the sales of liquor end up with very small group of people.
Fact #8: People with political background are the major players in the industry
Fact #9: “Liquor ruins country, family and life” is printed on every alcohol bottle. Ironically its almost exclusively sold by the state government.
Easy access to liquor causes frequent consumption, similar to junk food and sugary drinks. Low income and daily waged people are the most affected from it. Only one company (TASMAC) controls the entire alcohol industry in Tamilnadu. It’s easy to moderate that company from selling alcohol to poor rather than creating awareness for 60 million people. Government seems to think that printing “மது நாட்டுக்கு வீட்டுக்கு உயிருக்கு கேடு” will stop people from consuming it.
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