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The Tamil Nadu government has introduced a major overhaul of the liquor procurement policy of the Tamil Nadu State Marketing Corporation (TASMAC), directing the state-run retail monopoly to purchase alcoholic beverages more evenly from all approved manufacturers instead of relying heavily on a handful of companies. 

TASMAC, which operates more than 4,000 retail liquor outlets across Tamil Nadu, currently procures Indian Made Foreign Liquor (IMFL) from 11 manufacturers and beer from six companies. Some of these manufacturers are reportedly promoted by individuals associated with major political parties. Until now, procurement was largely driven by consumer demand, with TASMAC purchasing significantly higher quantities from the most popular brands.

In many cases, around 60 to 70 per cent of supplies came from a limited number of manufacturers whose products recorded the highest sales. Following the formation of the new TVK-led government, TASMAC has been implementing a series of reforms aimed at increasing transparency and streamlining operations.

As part of these efforts, the TASMAC Board, at its meeting held on July 6, resolved to adopt a more balanced procurement strategy by sourcing liquor in roughly equal quantities from all approved manufacturers.

In line with the decision, TASMAC has begun issuing purchase orders more uniformly across all liquor companies.

The corporation has also directed its premium “Elite” liquor outlets to stock at least one case each of premium- and medium-grade liquor from every approved manufacturer, ensuring a wider range of brands is available to consumers.

However, the revised procurement policy has drawn mixed reactions from TASMAC employees.

Staff members argue that equal procurement may not accurately reflect consumer preferences. They caution that if standard liquor varieties are purchased in equal volumes from every manufacturer, popular brands could run out of stock while slower-moving products remain unsold on store shelves.

According to employees, this could lead to shortages of liquor brands preferred by consumers while increasing inventory of products with limited demand.

Liquor consumers have, meanwhile, urged the government to further expand the range of products available in TASMAC outlets by introducing well-known imported and international liquor brands that are currently sold in neighbouring Union Territory of Puducherry and other nearby states. They believe offering a wider selection of premium brands would improve consumer choice and help TASMAC better compete with neighbouring markets.