Restructuring Alcohol Retail in Tamil Nadu: An Analysis of TASMAC's Performance and A Proposal for Supermarket-Based Reform

Author(s)	Mr. Palani S, Dr. Kishore K
Country	India
Abstract	This comprehensive study analyzes the financial and social performance of the Tamil Nadu State Marketing Corporation (TASMAC) monopoly and proposes a reformed Supermarket Alcohol Retail (SAR) model. Using secondary data from government reports and national surveys, we document TASMAC's remarkable revenue growth (41.5% from 2020-23, reaching ₹42,000 Cr in 2023) alongside significant social costs, including 468,956 drunk driving cases and 1,623 illicit liquor deaths in 2022. The analysis reveals operational inefficiencies, with a thin 5.7% profit margin despite massive revenue. We propose a phased transition to a controlled supermarket retail system that maintains state revenue while introducing modern retail efficiencies, strict digital controls, and enhanced social safeguards. This hybrid model aims to transform alcohol retail from a visible source of social friction into a regulated, responsible component of consumer commerce.
Keywords	TASMAC, alcohol policy, state monopoly, excise revenue, supermarket retail, public health, Tamil Nadu, regulatory reform
Field	Business Administration
Published In	Volume 7, Issue 4, July-August 2026
Published On	2026-07-05

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