TN sees dip in liquor sales, but revenue is on the rise

On New Year's Day, here's good news for anti-liquor campaigners in the state. Alcohol consumption in Tamil Nadu is falling, with figures for December alone showing a 20% dip in beer sales and 7% slide in sales of Indian-made foreign spirit (IMFS) in comparison to the last year.

But it is a win-win situation for the state government. While the sales in terms of volume have come down, the revenue from liquor has actually gone up, thanks to two price revisions since August. By increasing the prices, the government seems to have achieved the twin objective of bringing down alcohol consumption and increasing the revenue.

In December, the state-owned liquor retailer TASMAC registered a 12% increase in revenue, which translates to around Rs220 crore, when compared to last year. The New Year celebrations are expected to net an additional Rs 200 crore to the TASMAC kitty. The fall in consumption is attributed to the steep rise in prices and the renewed anti-liquor campaign by political parties and activists.

The negative trend in sales is not confined to one region. "Across the state, the sale of liquor has fallen steeply in the last one year," said a senior government official. This month, TASMAC outlets in Chennai sold 26,514 cases of IFMS (48 bottles of 180ml each or 24 bottles of 375ml each) and 5,331 cases (750ml of 12 bottles each) of beer every day. In December 2013, the daily sales were 40,882 cases of IMFS and 18,313 cases of beer.

TASMAC, which enjoys monopoly in sale of liquor, contributes a sizeable chunk of the state's revenue. Ever since the government took over retail vending of liquor in 2003, the revenue has been hitting a new high every year — from Rs 3,639 crore in 2004 to Rs 21,641 crore during last fiscal. In 2014-15, the government hopes to net Rs 26,295 crore, though political parties like MDMK and PMK have stepped up their demand for total prohibition in the state.

Sasi Perumal, a Gandhian who has been spearheading the anti-liquor movement in the state, said the awareness against alcohol consumption is being driven by women and youth. He said that, protests by women and youths have forced the government shut down liquor shops in many areas. College students are taking part in his padayatra for total prohibition. The anti-liquor campaigners are planning to move the Supreme Court for total prohibition across the country in January. A fast-unto-death protest has been slated for January 30, on the occasion of Mahatma Gandhi's death anniversary.