Prohibition: A 21,641 crore question in Tamil Nadu

In a scenario where the 2016 promises to be a closely fought election, what every party seeks is a strong suit of public disenchantment that can be used as a trump card. And the Bihar election verdict, appears to have done just that for many of them. Nitish Kumar has returned as the chief minister, and many say his victory was due to his pre-poll manifesto of prohibition. Pundits say women, particularly in rural areas, voted for Nitish and he has now announced prohibition in his state effective April 1.

As if on cue, on Friday, practically every Opposition party leader in Tamil Nadu urged the AIADMK government to follow Bihar’s lead and bring in prohibition.

Tamil Nadu has been flirting with prohibition over the years, banning liquor sales for a while only to lift it a few years later, when coffers run dry. The state’s liquor policy has always been a balance between political calculations and monetary considerations. Both the DMK and AIADMK have on many occasions introduced prohibition only to lift the ban a few years later. PMK is probably the only party with an unequivocal stand on prohibition.

During the years of ban, the spurious liquor trade thrived here, with many hooch deaths to its sad history and the government in place accused of turning a blind eye. On the other hand, ever since the government became the sole dispenser of alcohol in 2002, the government’s earning sky-rocketing. Last year it was pegged at a hefty 20% of the total revenue of the state. Political observers say this is where the dilemma lies for political parties. “They cannot look away from the revenues, nor can they turn a blind eye to the social impact of wide spread drunkenness”.

Tamil Nadu has seen an astronomical growth in its liquour sales, and revenue to government as the figures below show

Income before Tasmac take-over (2002-03) was Rs 2829.09 crore. It was Rs 6086.95 cr in 2005-06, reflecting a 115.23 % growth rate

Income from Tasmac sale since 2010

2010-2011 : Rs 14,965 cr

2011-2012 : Rs 18,081 cr

2012-2013 : Rs 21,680 cr

2013-2014 : Rs 21, 641 cr