The Evolution of TASMAC: How It Came to Play a Dominant Role in Tamil Nadu's Alcohol Trade
TASMAC, or the Tamil Nadu State Marketing Corporation, is a significant player in Tamil Nadu's alcohol market, established to manage and control the sale of alcoholic beverages. Here, we explore the fascinating journey of TASMAC from its inception in 1983 to its current position as the sole retail vendor of alcohol in the state. This story is intricately intertwined with the political landscape of Tamil Nadu and the efforts to regulate the liquor trade for the welfare of the state's population.
Introduction to the Tamil Nadu Alcohol Market
Before the establishment of TASMAC, the sale of alcohol in Tamil Nadu was largely unregulated. This lack of regulation led to a myriad of issues, including illegal brewing, distribution, and sales. The government recognized the necessity to address these challenges and sought to regulate the liquor market to curb such activities.
The Founding of TASMAC in 1983
In 1983, the Government of Tamil Nadu established TASMAC to establish a state monopoly over the sale of alcohol. This move was part of a broader strategy to regulate the liquor trade and generate revenue for the state. MGR, then the chief minister, was instrumental in establishing TASMAC, following a precedent set by his predecessors in lifting the prohibition on liquor sales. Tamil Nadu had a unique history under the leadership of Dr. Rajaji, who initiated the prohibition in 1937, and M.Karunanidhi, who lifted it in 1971. However, it was MGR who made the crucial step of establishing TASMAC in 1983.
The Role of TASMAC in Regulating the Market
TASMAC was tasked with the wholesale and retail distribution of alcohol, ensuring it was sold in a controlled manner. By operating through a network of government-owned outlets, TASMAC aimed not only to reduce illegal activities but also to generate revenue for public welfare initiatives. Through this, TASMAC has become a significant source of revenue for the state, contributing to various developmental projects and social programs.
Monopoly and Revenue Generation
ADMK, the government headed by Jayalalitha, further strengthened TASMAC's position in 2003 by making it the sole retail vendor of alcohol in the state. This amendment to the Tamil Nadu Prohibition Act 1937 established a monopoly by the state, aiming to control the alcohol trade comprehensively. This move was part of a broader strategy to generate substantial revenue for the state government, which has led to record-breaking revenues for TASMAC, contributing to over 26,794 crore annually for the year 2017–18.
Political Context and Social Impact
The establishment of TASMAC and its evolution into a monopoly reflect the political choices and priorities of the ruling parties in Tamil Nadu. The rise of Dravidian parties, particularly ADMK and DMK, has led to significant changes in the state's economic and social landscape. For instance, Tamil Nadu has seen a marked decrease in the number of government schools, with around 4,250 schools today, down from the 6,800 established under Kamarajar's tenure. This reduction correlates with the increasing number of retail liquor shops opened by these parties, reflecting a shift in priorities away from education and towards the control and regulation of the alcohol market.
Today, approximately 47% of the population in both rural and urban Tamil Nadu consume alcohol, contributing to the state's significant revenue from TASMAC. This not only highlights the commercial success of the monopoly but also raises questions about the social and economic implications of prioritizing such economic activities over educational and welfare initiatives.
In conclusion, the journey of TASMAC from a regulatory authority to a state monopoly reflects the complex interplay of political and economic factors in Tamil Nadu. While it has provided a controlled market and a significant revenue source, it also raises questions about the balance between commercial success and social welfare.