Tamil Nadu considers opening liquor market to global players, boost revenue
Tamil Nadu’s liquor market could be headed for a major transformation as the state government considers opening the sector to global liquor companies after years
Tamil Nadu’s liquor market could be headed for a major transformation as the state government considers opening the sector to global liquor companies after years of dominance by local distilleries, while simultaneously tightening regulatory oversight and enforcement. The proposed policy shift is aimed at increasing excise revenue, expanding consumer choices and preventing customers from moving to neighbouring states due to limited brand availability within Tamil Nadu. Read Full Story Officials said the government believes introducing a wider range of liquor brands, including international labels, could help retain consumers, improve customer experience and strengthen revenue collections. The move is also being seen as a way to compensate for losses caused by recent changes in the state’s retail network. At the same time, the Tamil Nadu government is preparing a broader overhaul of the liquor distribution system, including plans to modernise outlets operated by the Tamil Nadu State Marketing Corporation (TASMAC), prevent revenue leakages and enforce stricter compliance across licensed premises.
TASMAC stores are expected to undergo upgrades designed to improve customer experience. "The buying experience for customers will be improved by enhancing the ambience of these shops," an official said. The government’s review comes after the closure of 717 TASMAC outlets, a move that reportedly led to revenue losses running into crores. The shutdown affected nearly 15 per cent of the state-run retail network. To offset the decline in collections, authorities are considering allowing additional liquor brands into the market, including global players. According to officials, consumer migration has become a concern, with buyers increasingly travelling to Bengaluru and Puducherry where a broader selection of liquor products is available. The government expects that expanding brand availability in Tamil Nadu could help reduce this outflow while attracting more consumers to state-run outlets. LIQUOR SALE REGULATED Alongside market expansion, the government has reiterated strict rules governing liquor sales and licenced establishments.
The Commissioner of Prohibition and Excise said in a press release that the Government of Tamil Nadu, under the leadership of Chief Minister C Joseph Vijay, is committed to creating a drug-free, healthy and socially responsible environment across the state. Officials directed that provisions under the Tamil Nadu Liquor (Licence and Permit) Rules, 1981 must be strictly followed across FL2 (clubs) and FL3 (hotels) licenced premises. "No liquor shall be sold, supplied, issued, or served to any person below the age of 21 years. In cases where the age of a person is doubtful, valid documentary proof of age shall be verified before serving liquor," the official said. Authorities also stated that all FL2-licenced clubs must issue membership identity cards to registered members, and liquor may be served only to members and their eligible guests under existing licence conditions.
The BriefWire