Tamil Nadu State Marketing Corporation Limited sales dip by 4-6% since price hike

CHENNAI: Sale of liquor by the state-owned Tamil Nadu State Marketing Corporation Limited (Tasmac) have dropped by four to six per cent across the state since the prices were hiked in March this year, say sources in Tasmac.
While there has been little change in the sale of premium range Indian-made foreign liquor (IMFL) even after the prices were hiked upto 80, the majority consumers of medium range liquor have reportedly shifted to ordinary range after the prices were hiked.

“The prices of medium range liquor were hiked by 20 to 60, whereas the hike in ordinary range was just 50% of other ranges. A 180 ml brandy in the medium range saw a hike of 20, the same in the ordinary range was became just 10 costlier. So, tipplers are of late opting for ordinary range. However, the supply of ordinary range of liquor is not sufficient to meet the demand, resulting in the sales drop,” said a Tasmac union head, on condition of anonymity. Since distilleries supplying to Tasmac prefer despatching premium and medium range liquor for their higher profit margin, the stock of ordinary range fall short of the increased demand.
In the list of brands each distillery supplies, the premium ones account for nearly 60% However, according to supervisors at different Tasmac outlets, the medium and ordinary range of liquor account for 80% sales (40% each), while the sale premium range of liquor stands at 20%. “Since summer is gone, Tasmac is feeling the heat now due to reduced sales. It has led to the resumption of monthly review meetings of Tasmac outlet supervisors, which had been stopped years ago following criticism that such meetings to increase the sales of liquor should not be conducted,” he said.
On Wednesday, supervisors of 83 Tasmac outlets in South Chennai district participated in a similar meeting conducted by the Tasmac’s district manager since those outlets reported reduced sales in May compared to the same period in 2019. The supervisors were reportedly asked to submit a report in writing to explain the reasons for the reduced sales. However, the district manager said that it was a regular meeting held to receive the grievances of the supervisors. Tasmac chairman was not available for his comment.