Chennai: Retail liquor prices in Tamil Nadu may increase soon, as distilleries and breweries supplying liquor varieties to Tamil Nadu State Marketing Corporation (Tasmac) have asked the state government to raise the procurement price of Indian made foreign liquor (IMFL) and beer. If the request is accepted, liquor prices will see a hike.
Distilleries and Breweries Seek Price Revision
There are 11 distilleries and seven breweries in the state that supply liquor to Tasmac. Sources said the manufacturers presented a joint representation to Excise and Prohibition Minister K Vignesh on Wednesday, highlighting the surge in input costs for liquor production.
“Due to the ongoing West-Asian crisis, bottle prices have increased because of the steep rise in the cost of helium gas, which is used to cool down glass during production. The cost of aluminium has also gone up, and sourcing extra neutral alcohol (ENA) has become a challenge after ethanol blending of gasoline. We have also made huge investments in procuring machinery to implement Tasmac’s end-to-end computerization as well as the empty bottle collection scheme. To overcome all these challenges, the rise in procurement cost is crucial,” said a distiller on condition of anonymity.
Additional Fees and Past Price Hikes
The state government recently ordered distillers, breweries, and wineries to pay an additional fee of ₹90, ₹40, and ₹20 per carton, respectively, to the exchequer. The distillers say this is also one of the reasons for their demand to increase the procurement cost. In the last four years, the previous government increased excise and sales tax in 2022 and 2024, which raised liquor prices by up to ₹40 for normal varieties and up to ₹100 for premium liquor. However, the state absorbed the entire revenue, while distilleries and breweries continued to supply liquor at the same cost. “This time, we hope the state government will consider our demands,” said a distiller.
Consumer Concerns
Liquor buyers are not pleased. “Compared to other states, liquor prices are already high in Tamil Nadu and the variety available is very poor. They should provide more choices, stop overcharging buyers, and offer better ambience at outlets,” said V Moorthy of West Mambalam.
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About the Author
Venkadesan S is a Special Correspondent who primarily covers electricity, aviation, the information commission, central investigation agencies, and metro rail.
