Liquor manufacturers urge TN govt to hike procurement price

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 govt to increase the procurement price of Indian made foreign liquor (IMFL) and beer. If the request is acceded to, liquor prices will see a rise.There are 11 distilleries and seven breweries in the state that supply liquor to Tasmac. Sources said the manufacturers gave a joint representation to excise and prohibition minister K Vignesh on Wednesday, highlighting the jump in input cost for liquor production.“Due to the ongoing West-Asian crisis, bottle prices have increased due to the steep rise in the cost of helium gas which is used to cool down the 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.The state govt recently ordered distillers, breweries and wineries to pay ₹90, ₹40 and ₹20 respectively extra per carton to the exchequer as an additional fee, the distillers says that too is one of the reasons for their demand to increase the procurement cost.In the last four years, the previous govt increased the excise and sales tax in 2022 and 2024, which increased the liquor prices by upto ₹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 for the same cost. “This time, we hope the state govt will pay heed to our demands,” said a distiller.Liquor buyers are not amused. “Compared to other states, liquor prices are already high in Tamil Nadu and the variety available is very poor. They should make more choices available, stop overcharging buyers, and provide better ambience at outlets,” said V Moorthy of West Mambalam.