TASMAC

Last updated

TASMAC
Company type Government-owned corporation
IndustryRetail and Wholesale alcohol (IMFL) vending
Founded1983
Founder M. G. Ramachandran
HeadquartersCMDA Tower-II, IV Floor, Gandhi Irwin Bridge Road, Egmore, Chennai-600008, Tamil Nadu, India
Key people
 S. Muthusamy, Minister for Prohibition and Excise Department
₹ 33,811 Crore in 2021 Source Fin express
Total assets 5402 Retail Outlets [1]
Number of employees
29,297 [1]
Website http://tasmac.co.in/

The Tamil Nadu State Marketing Corporation (TASMAC) is a company owned by the Government of Tamil Nadu, which has a monopoly over wholesale and retail vending of alcoholic beverages in the Indian state of Tamil Nadu. It controls the Indian Made Foreign Liquor (IMFL) trade in the state.

Contents

History

TASMAC was established in 1983 by then Chief Minister M. G. Ramachandran. [2] The state has a long history of prohibition, first implemented partially in 1937 by the Indian National Congress government of C. Rajagopalachari. Between 1973 and 2001, it was lifted briefly during 1971–74, 1981–87 and 1990–91. After 1983, TASMAC was in charge of wholesale liquor sales in the state whenever prohibition was lifted. In 2001, prohibition was lifted again and TASMAC became the wholesale monopoly for alcohol. For retail vending, the state auctioned off licenses for running liquor shops and bars. But this led to the formation of cartels and loss of revenue to the state. The government tried to counter this by introducing a lot system from the financial year 2001–02, where potential bidders bid for shops grouped by revenue. But the lot system could not prevent cartelisation, as bidders later withdrew in favour of others. In October 2003, the government passed an amendment to the Tamil Nadu Prohibition Act, 1937, making TASMAC the sole retail vendor of alcohol in the state. By 2004 all private outlets selling alcohol were either shut down or taken over by the company. This monopoly established by the AIADMK government of J. Jayalalithaa came into effect on 29 November 2003. The DMK government of M. Karunanidhi which took power in 2006, did not revise its predecessor's policy and TASMAC continues to control the alcohol industry in the state. [3] [4] [5] [6] [7]

Organisation

A TASMAC Bar in Coimbatore TASMAC bar.JPG
A TASMAC Bar in Coimbatore

TASMAC is wholly owned by the government of Tamil Nadu, coming under the purview of the Ministry of Prohibition and Excise. Its headquarters is situated at the CMDA towers in Egmore, Chennai. It is governed by a board whose members belong to the Indian Administrative Service (IAS). The company organisation is divided territorially into five regions- Chennai, Coimbatore, Madurai, Trichy and Salem each under a regional manager. These regions are further divided into 33 districts run by district managers. As of 2010, the company has around 30,000 employees and operates about 6800 retail liquor outlets throughout the state. Employees of TASMAC are not considered as government employees and are not entitled to the benefits and legal rights (like statutory pay, paid holidays and an 8-hour workday) of other employees of the state. The retail outlets do not have individual names. Instead they are named as "TASMAC Shop XXX", where XXX stands for the outlet number. They are popularly referred to as "wine shops", though they sell other kinds of liquor as well. About half the outlets have bars attached to them. [8] [9] [10] [11] [12] [13] [14]

Impact

The reorganisation of retail alcohol trade in the state has brought record revenues for the government allowing it to increase spending on welfare schemes. While consumption of alcohol has increased among the population, deaths due to consumption of contaminated illicit liquor (common during the prohibition era) have gone down. [3] [4] [6] [15] [16] The monopoly trade has led to widespread irregularities like adulteration, corruption, overpricing and black marketing in the retail outlets. It has also led to increased complaints about disturbances created by drunk patrons from residents in areas where the retail outlets are situated. [1] [17] [18] [19] [20] High retail prices (due to a higher tax rate) and absence of a wide range of choices have led to a thriving alcohol tourism industry in the neighbouring union territory of Puducherry, where alcohol prices are lower and different brands are available. TASMAC has been forced to offer more choices of brands to counter the increase in smuggling of non-available alcohol brands into the state. [21] [22]

Growth

Interior of a TASMAC Bar in Ooty Ooty TASMAC.jpg
Interior of a TASMAC Bar in Ooty

Since the take over by the government, TASMAC has seen an annual revenue of growth of around 20 percent every year. The turnover in 1983 (the year of incorporation) was ₹183 crores. In 2002–03 before the take over of retail vending, the turnover was ₹3,499.75 crores, out of which the government got a tax revenue of ₹2,828.09 crores. After the take over of retail vending, the tax revenue shot up to ₹3,639 crores in the financial year 2003–04. The tax revenue has two components – excise tax and sales tax each constituting roughly 50% of the total. A large part of the tax revenue is accounted as profit for the state since it is both the wholesale and retail vendor and the difference in the prices goes directly to the state exchequer. In the following four financial years revenue increased to 4872, 6087, 7300 and 8822 Crore Rs respectively. In 2005–06, the 23-year-old record for alcohol sales revenue in the state was broken. The ₹10,000 crore (₹100 Billion) mark was reached in the financial year 2008–09, when the revenue was ₹10,601.5 crores. For the financial years 2009–10 and 2010–11 it stood at ₹12,491 and ₹14,965 Crores respectively. Besides the tax revenue, the company also makes money by selling annual licenses to run bars in its retail outlets. The steady growth in revenue is accounted for by the periodical increase in retail prices and by increasing alcohol consumption in the state. Hard liquors like whiskey, rum, wine, brandy and vodka account for about 80% of the sales and beer accounts for the remaining 20%. [1] [23] [17] [24] [25] [26] [27] [28] [29] [30] The revenue nearly doubled from ₹18,081 crores in 2011 to ₹31,157 crores in 2019. [31] [32]

Annual Revenue of TASMAC
Fiscal YearRevenue in Crores (₹) % Change
2002–03
2,828.09
2003–04
3,639
Green Arrow Up.svg 28.67%
2004–05
4,872
Green Arrow Up.svg 33.88%
2005–06
6,086.95
Green Arrow Up.svg 24.94%
2006–07
7,300
Green Arrow Up.svg 19.93%
2007–08
8,822
Green Arrow Up.svg 20.85%
2008–09
10,601.5
Green Arrow Up.svg 20.17%
2009–10
12,491
Green Arrow Up.svg 17.82%
2010–11
14,965.42
Green Arrow Up.svg 19.80%
2011–12
18,081.16
Green Arrow Up.svg 20.82%
2012–13
21,680.67
Green Arrow Up.svg 19.91%
2013–14
23,401
Green Arrow Up.svg 7.93%
2014–15
26,188
Green Arrow Up.svg 11.91%
2015–16
25,845.58
Red Arrow Down.svg −6.76%
2016–17
26,995.25
Green Arrow Up.svg 6.97%
2017–18
26,797.96
Red Arrow Down.svg −0.73%
2018–19
31,157.83
Green Arrow Up.svg 8.39%

See also

Related Research Articles

<span class="mw-page-title-main">Tamil Maanila Congress</span> Indian political party

The Tamil Maanila Congress (Moopanar) (transl. Tamil State Congress (Moopanar); abbr.TMC(M)) is an Indian regional political party in the state of Tamil Nadu. It was founded by the former member of parliament of the Republic of India G. K. Moopanar on 29 March 1996 as a breakaway faction from the Tamil Nadu Congress Committee.

<span class="mw-page-title-main">Liquor store</span> Retail shop that sells alcohol

A liquor store is a retail business that predominantly sells prepackaged liquors, wine or beer, usually intended to be consumed off the store's premises. Depending on region and local idiom, they may also be called an off-licence, off-sale, bottle shop, bottle store or, colloquially, bottle-o, liquor store or other similar terms. A very limited number of jurisdictions have an alcohol monopoly. In US states that are alcoholic beverage control (ABC) states, the term ABC store may be used.

<span class="mw-page-title-main">Viduthalai Chiruthaigal Katchi</span> Indian political party

Viduthalai Chiruthaigal Katchi formerly known as the Dalit Panthers of India or the Dalit Panthers Iyyakkam is an Indian social movement and political party that seeks to combat caste based discrimination, active in the state of Tamil Nadu. The party also has a strong emphasis on Tamil nationalism. Its chairman is Thol. Thirumavalavan, a lawyer from Chennai and its general secretary is the writer Ravikumar.

<span class="mw-page-title-main">Economy of Tamil Nadu</span>

Tamil Nadu has the second largest state economy in India. The state also hosts the highest number of factories in the country. The state is 48.40% urbanised, accounting for around 9.26% of the urban population in the country, while the state as a whole accounted for 5.96% of India's total population in the 2011 census. Services contributes to 54% to the gross domestic product of the state, followed by manufacturing at 33% and agriculture at 13%.

<span class="mw-page-title-main">Alcohol monopoly</span> Government monopoly on alcohol aiming to reduce consumption

An alcohol monopoly is a government monopoly on manufacturing and/or retailing of some or all alcoholic beverages, such as beer, wine and spirits. It can be used as an alternative for total prohibition of alcohol. They exist in all Nordic countries except Denmark proper, and in all provinces and territories in Canada except Alberta. In the United States, there are some alcoholic beverage control states, where alcohol wholesale is controlled by a state government operation and retail sales are offered by either state or private retailers.

<span class="mw-page-title-main">Tamil cinema</span> Indian Tamil-language film industry

Tamil cinema, also known as Kollywood, is the segment of Indian cinema dedicated to the production of motion pictures in the Tamil language widely spoken in the state of Tamil Nadu. It is nicknamed Kollywood, a portmanteau of the names Kodambakkam, a neighbourhood in Chennai, and Hollywood. The first Tamil silent film, Keechaka Vadham, was directed by R. Nataraja Mudaliar in 1918. The first Tamil talking feature film, Kalidas, a multilingual directed by H. M. Reddy was released on 31 October 1931, less than seven months after India's first talking motion picture Alam Ara.

<span class="mw-page-title-main">Alcohol prohibition in India</span> Prohibition of alcohol in Indian states

Alcohol is prohibited in the states of Bihar, Gujarat, Mizoram, and Nagaland. All other Indian states and union territories permit the sale of alcohol.

<span class="mw-page-title-main">Kerala State Beverages Corporation</span>

Kerala State Beverages Corporation Ltd (BEVCO) is a public sector company fully owned by the Government of Kerala, it started under Civil Supplies Department in 1984 under the Minister N Sreenivasan, K Karunakaran Ministry. Since then BEVCO has the authority under the Abkari Act & allied Rules for the wholesale and retail vending of alcoholic liquor in Kerala. It controls the retail sales of Indian Made Foreign Liquor (IMFL) and Beer in the state.

<span class="mw-page-title-main">Chennai Trade Centre</span> Building in India

Chennai Trade Centre is a permanent exhibition complex in Nandambakkam, Chennai, hosting several trade fairs and conventions round the year. It is the first fair infrastructure that has been developed by India Trade Promotion Organisation (ITPO)—the premier trade promotion agency of the Government of India, Ministry of Commerce and Industry—outside Delhi. A joint initiative of the ITPO and the Tamil Nadu Trade Promotion Organisation, which hold 51 and 49 percent stakes, respectively, the Trade Centre was designed by C R Narayan Rao, and was commissioned in January 2001, while the convention centre was commissioned on 1 November 2004. The exhibition hall was constructed at an estimated cost of ₹ 23 crore and the convention centre at a cost of ₹ 22 crore. Together, these centres cover 10,560 sq m and are fully booked for 75 days in a year. Built over an area of 25.48 acres, the centre comprises four modules of 4,400 m2 each of exhibition halls and support services to be built in a phased manner. In the first phase, two air-conditioned halls without pillars or columns encompassing areas of 5,000 m2 and 1,850 m2 were constructed. There are three halls, viz, Hall No. 1 (4,400 m2), Hall No. 2 (1,760 m2) and Hall No. 3 (4,400 m2). The halls feature a height of 6 m to display all merchandise including machinery. These have been supplemented recently with a modern, fully air-conditioned convention centre. All the halls are inter-linked, and Hall No. 3 is connected with the convention centre. The convention centre can accommodate 2,000 people with a provision for dividing the hall into two equal parts and has an audiovisual facility suitable for multi-purpose use such as conferences, conventions, cultural shows, and so forth. The Chennai Trade Centre is managed by Tamil Nadu Trade Promotion Organisation (TNTPO), a joint venture of ITPO and Tamil Nadu Industrial Development Corporation (TIDCO).

<span class="mw-page-title-main">Tamil Nadu Government Laws & Rules</span>

This is a list of Tamil Nadu Government laws and rules.

Puspanathan Wilson is a Senior Advocate in India and has served as the Additional Solicitor General of India between August 2012 and May 2014, and the Additional Advocate General of the State of Tamil Nadu between August 2008 and May 2011.

The 2008 Karnataka-Tamil Nadu alcohol poisonings was an incident in the southern Indian states of Karnataka and Tamil Nadu in May 2008 in which 180 people reportedly died after consuming illicit liquor. This incident is considered to be the worst methanol poisoning in the country since at least 2000.

<span class="mw-page-title-main">Tamil Nadu Fire and Rescue Services</span> Fire department in Tamil Nadu, India

The Tamil Nadu Fire and Rescue Services department is a service department of the Government of Tamil Nadu whose function is to fight fires and provide relief measures in times of calamities and disasters in Tamil Nadu.

Road collisions in Tamil Nadu, a state in South India, are among the highest in India. In 2013, the state recorded 15,563 fatalities in the 14,504 recorded collisions, the highest for any state in India. The state also topped the list of most collisions in a state for all previous 18 years from 2002 to 2020. According to the report of two experts published in the International Journal of Research in Management and Technology, driving under the influence of alcohol accounts for 82 per cent of collision fatalities in India. A few political leaders have vehemently opposed the state-run TASMAC shops that sell alcohol and have called for a total prohibition of alcohol in the state, but opposing governments have maintained that prohibition would lead to illegal liquor, which in the past has claimed hundred of lives. The increase in number of vehicles from 82 lakh in 2007 to 1.6 crore in 2012 without appreciable change in the road infrastructure is also believed to the reason for most collisions.

Sasi Perumal was a Gandhian activist and anti-liquor activist from Salem, Tamil Nadu. He protested for the enforcement of prohibition in Tamil Nadu for over four decades. He died near Marthandam in Kanyakumari after staging a demonstration atop a BSNL tower for the removal of a TASMAC outlet near a church at Unnamalaikkadai.

<span class="mw-page-title-main">2015 South India floods</span> 2015 Disastrous Floods

The 2015 South India floods resulted from heavy rainfall generated by the annual northeast monsoon in November–December 2015. They affected the Coromandel Coast region of the South Indian states of Tamil Nadu and Andhra Pradesh. More than 500 people were killed and over 1.8 million people were displaced. With estimates of damages and losses ranging from nearly ₹200 billion (US$3 billion) to over ₹1 trillion (US$13 billion), the floods were the costliest to have occurred in 2015, and were among the costliest natural disasters of the year.

Alcohol prohibition in Tamil Nadu is governed by the State Prohibition and Excise department as per the Tamil Nadu Prohibition Act, 1937. TASMAC, a state government-owned company, controls the wholesale and retail vending of alcoholic beverages in the State. On 24 May 2016, after his swearing-in, J. Jayalalitha announced the closing of 500 liquor shops and the reduction of the business hours of State-run liquor shops across the State. On 20 February 2017, the first office order signed by the Chief Minister Edappadi K. Palaniswami was the closure of 500 liquor outlets owned by the public sector TASMAC. This is in addition to the 500 liquor outlets closed down by late Chief Minister J Jayalalithaa in May 2016.

<span class="mw-page-title-main">Tamil Nadu Global Investors Meet</span> Business summit

Tamil Nadu Global Investors Meet (TNGIM) is a business summit organized by Government of Tamil Nadu to facilitate domestic and foreign investments in the state. The first of these summits took place in 2015 and later in 2019. The next meet is scheduled to take place in January 2024.

The first case of the COVID-19 pandemic in the Indian state of Tamil Nadu was reported on 7 March 2020.

References

  1. 1 2 3 4 "Staff fleece tipplers of Rs 5,000 cr at Tasmac". Deccan Chronicle. Retrieved 4 June 2010.
  2. ↑ "Home: TASMAC". tasmac.co.in. Retrieved 12 February 2024.
  3. 1 2 Subramanian, T. S. "Deadly concoctions". Frontline . Archived from the original on 12 June 2002. Retrieved 4 June 2010.{{cite web}}: CS1 maint: unfit URL (link)
  4. 1 2 Anand, S. "Rotgut Blues". Outlook . Retrieved 4 June 2010.
  5. ↑ "TASMAC, coops alone to retail trade IMFL in TN". Business Standard . 28 October 2003. Retrieved 4 June 2010.
  6. 1 2 Ramesh, Niranjana (9 June 2009). "Politics influences DMK on disinvestment in central PSUs". The Economic Times . Retrieved 4 June 2010.
  7. ↑ Nambath, Suresh. "A dangerous mix". The Hindu. Archived from the original on 31 October 2004. Retrieved 4 June 2010.{{cite web}}: CS1 maint: unfit URL (link)
  8. ↑ Reddy, Ajay. "Elixir to the elite?". The New Indian Express. Archived from the original on 17 May 2014. Retrieved 4 June 2010.
  9. ↑ "TASMAC Organisation chart". Govt of Tamil Nadu. Retrieved 4 June 2010.
  10. ↑ "TASMAC outlets to down shutters on March 17". The New Indian Express . Archived from the original on 17 May 2014. Retrieved 4 June 2010.
  11. ↑ "Tasmac told to pay 42 staff Rs 2.29L overtime wages". The Times of India . 29 October 2009. Archived from the original on 11 August 2011. Retrieved 4 June 2010.
  12. ↑ "Rs 20 crore loss for state after Tasmac staff strike". Deccan Chronicle . Retrieved 4 June 2010.
  13. ↑ "Tasmac strike fizzles out in state". Deccan Chronicle . 12 August 2010. Retrieved 19 August 2010.
  14. ↑ "Salary of TASMAC staff hiked". The New Indian Express . 18 August 2010. Archived from the original on 17 May 2014. Retrieved 19 August 2010.
  15. ↑ "TN alcohol revenues up 20%". Business Line . Retrieved 4 June 2010.
  16. ↑ "60 pc increase in alcohol consumption among youths". The Hindu. Chennai, India. 11 January 2009. Retrieved 4 June 2010.
  17. 1 2 Sivan, Jayaraj (30 April 2009). "Tipplers in TN cough up much more than retail price – Rs 500 cr a year". The Times of India . Archived from the original on 11 August 2011. Retrieved 4 June 2010.
  18. ↑ "TASMAC outlets nearby keep residents spiritless". The Hindu . Chennai, India. 15 October 2007. Archived from the original on 15 October 2007. Retrieved 4 June 2010.
  19. ↑ "Govt urged to detach bars from TASMAC shops". The New Indian Express . Archived from the original on 4 March 2016. Retrieved 4 June 2010.
  20. ↑ "48 bottles of adulterated liquor seized from TASMAC outlet, 4 suspended". The Times of India . 29 November 2009. Archived from the original on 11 August 2011. Retrieved 4 June 2010.
  21. ↑ "For A Foster's Or Two". Outlook. Retrieved 4 June 2010.
  22. ↑ Kumar, B Aravind (3 June 2008). "Beer guzzling in TN up by 22%". The Times of India . Archived from the original on 11 August 2011. Retrieved 4 June 2010.
  23. ↑ "Revenue from liquor sale grows significantly". The Hindu . Chennai, India. 26 April 2007. Archived from the original on 2 June 2007. Retrieved 4 June 2010.
  24. ↑ "TASMAC finalises list of licensees for 221 wine shops". The Hindu . Chennai, India. 25 May 2010. Archived from the original on 28 May 2010. Retrieved 4 June 2010.
  25. ↑ "Consumption of liquor rises in TN". The Times of India . 10 May 2008. Archived from the original on 11 August 2011. Retrieved 4 June 2010.
  26. ↑ "Excise, sales tax from liquor trade yield Rs.15,000 crore". The Hindu. Chennai, India. 8 September 2011. Retrieved 10 October 2011.
  27. ↑ "Tamil Nadu's liquor revenue rises to Rs 18K cr". The Times of India . 27 April 2012. Archived from the original on 3 January 2013. Retrieved 31 October 2012.
  28. ↑ "Tamil Nadu earns revenue of over Rs 21,680 crore from liquor sale". Economic Times. 14 May 2013. Retrieved 30 September 2013.
  29. ↑ "TASMAC to Net Additional Rs 3,000 Crore". The New Indian Express. 14 February 2013. Archived from the original on 4 December 2014. Retrieved 19 October 2014.
  30. ↑ "TASMAC to Net Additional Rs 3,000 Crore". Business Standard. 25 March 2015. Retrieved 12 December 2015.
  31. ↑ "3,321 TASMAC outlets closed in Tamil Nadu following SC order: Govt". Hindustan Times. 19 June 2017. Retrieved 8 May 2020.
  32. ↑ "Revenue from liquor sales rises 16%, crosses ₹30,000-cr. mark". The Hindu. 5 July 2019. ISSN   0971-751X.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.