How much will the price per bottle increase?
It is being told that there will be an increase of Rs 10 to 20 per bottle for ordinary and medium range brands. At the same time, an increase of Rs 30 to Rs 50 per bottle is expected for premium and foreign liquor (IMFL).
The price of beer may also increase by Rs 10 per bottle. However, no final decision has been taken yet and an official announcement could be made by the end of this week.
When was the last time the price was increased?
The last change in liquor prices in the state was made on February 1, 2024, when the government increased the prices of various brands of liquor by Rs 10 to Rs 80.
If the price hike is approved this time, it will be the first change in prices in more than two years. At that time also this decision was taken with the aim of increasing the revenue of the government.
Why are prices rising?
There are several reasons for this price increase. First, the government recently shut down 717 Tasmac retail outlets located near schools, colleges, bus stands and temples. This led to a huge revenue loss to the government.
It is possible that the government wants to compensate for this loss by increasing the rate. Secondly, according to a senior TASMAC official, the state had recently imposed a manufacturing cess on liquor manufacturers supplying IMFL products and beer.
The levy will fetch the government an additional revenue of around Rs 6,000-10,000 crore annually.
Thirdly, due to rising taxes and rising cost of raw materials, the liquor manufacturing companies had also asked the government to increase the procurement price, which the government has accepted.
Moreover, the state government had also increased the prices of liquor by 8-10% on March 20 last year, and now the new hike is being considered once again.
When will the new rates come into effect?
Although there is no official confirmation yet, it is expected that the new prices can be implemented by the end of this week. The proposal has been discussed in detail in the board meeting and the final decision is likely to come soon.
Tasmac officials have indicated that the process of issuing new rates is being expedited. Customers are advised to keep checking the new rates on the official website or stores of Tasmac.
What are the effects of the products?
Product Category
Potential increase (per bottle)
Ordinary and mid-range brands ₹10 - ₹20 Premium
IMFL (Foreign Liquor) ₹30 - ₹50
Beer ₹10
The hike will be applicable on 120 ml bottles, and a uniform increase across categories is under consideration. There has not yet been official information on how much the increase will be on large bottles (750 ml or 1 liter), but it is expected that there will also be a proportional increase on large bottles.
What's the government saying?
Excise Minister K. Vignesh had earlier indicated that new measures were being considered to increase revenue from liquor sales. However, he also said that the government wants to avoid any decision that will put additional burden on common consumers.
The main objective of the hike is to compensate for the revenue loss from the closed Tasmac outlets and to accommodate the rising cost of liquor manufacturers.
Is there any hope of recovery?
So far, there is no information that the government is considering giving relief to a particular category of consumers.
At the moment, there is likely to be a uniform hike on all categories of liquor. However, the final decision will be taken only after the board's approval. Consumers are advised to buy what they need before the new rates come into effect.
Conclusion
Liquor prices are on the rise in Tamil Nadu. The hike of Rs 10 to Rs 50 per bottle will be the first in two years and will affect all categories from ordinary to premium. The move is being taken to cover the revenue shortfall and rising cost of liquor manufacturers due to the closure of 717 Tasmac outlets.
Although there is no official confirmation yet, it is expected that the new prices will be implemented by the end of this week. If you live in Tamil Nadu, keep an eye out for the official announcement of the new rate.
Stay tuned to timesbull.com for the latest government updates and news on price changes.