Close the TAS-u MAC-u - Way out of the shutter

The last two months in Tamil Nadu has witnessed widespread protests calling for closing the shutter on Tamil Nadu Marketing Corporation – TASMAC, the State run institution which controls the distribution of liquor in the State. The protests were triggered following the death of Mr.Sasi Perumal during his protest calling for closing a wine shop. In the aftermath of such incidents it is worthwhile to analyze the impact which TASMAC had had on the State especially in the last decade and the feasibility of its closure.

Implications:
The society has been at the receiving end of  TASMAC's success. TASMAC has influenced the psychology of the population and has made drinking an ‘acceptable’ part of our lives which is very well reflected in our movies. The act of drinking which was done on rare occasions far outside the premises of residential limits have completely changed with wine shops being found near all residential areas including schools and temples. There have been many instances where students have become addicted to this bane.

Apart from this, it takes a heavy toll on social capital. It has brewed many habitual drinkers among the poor who spend their hard earned money on liquor which destroys the savings of families.The fruitful relationship of families gets lost and children bear the brunt of the tussle between the parents. This has long term negative implications for the society with many among its population becoming physically, mentally and morally unhealthy in few decades. With the poverty gradient in India very steep increase in health costs is bound to push more people to poverty.

Poor governance model:
Tamil Nadu derives a significant part of its GDP from the Tax revenue of TASMAC (1). This revenue is utilized by the government for implementing its ‘welfare’ schemes. In the State’s context it translates to distributing ‘freebies’ to the public. The ‘welfare’ schemes have involved distribution of color television sets and electrical appliances instead of infrastructure spending and have not been useful to the people. . The model of freebies which was started almost a decade ago has taken a heavy toll on the State’s financial strength (2).

With the financial strength dwindling and TASMAC being a significant source of revenue, the government has hiked the taxes on liquor products to sustain the freebie schemes. Such governance model does not translate in creating welfare rather it harms the existing human capital.
The governance model of the distilleries and liquor production in the State is not sound either. The nexus between politicians and distilleries is so rampant that the government decides what the people drink (3).

Closing the shutter:
With problems in many domains, exiting the shutter is difficult but not impossible. The prominent stakeholders who are involved include the distilleries, the TASMAC employers and the liquor addicts. One of the promising areas of future alcohol usage is blending with petrol. This eco-friendly option is constructive and does not take a heavy toll on the existing distilleries.

The biggest problem for the citizens if TASMAC is done away would be dealing with alcohol addicts. Dealing with this issue would need proper medical infrastructure and de-addiction centers. This is a clear indication that this has to be handled in a phased manner after creating the necessary facilities.

Hence there has to be a policy change in effect which mandates a significant blend of petrol with alcohol and establishing enough de-addiction centers gradually if the government decides to do away with the institution TASMAC, following strong political will.

Ban TASMAC and not liquor:
Banning liquor in the state would essentially prove counter-productive. Though Gujarat is legally a ‘dry’ state, liquor is being smuggled from adjoining states. A ban would also spur the development of illicit alcohol to which many people would fall prey. Moreover banning liquor would favor the rich who could use their muscle to ignore it. Finally, banning a phenomenon is not constitutionally right and citizens must be empowered with choice.

To provide a level playing field the State should consider licensing to produce toddy water which has only 4% of liquor content compared to the greater than 40% liquor content prevalent in the current spirits consumed. Liquor shops should be driven away to the borders of the cities and villages to tide over the ‘acceptance’ factor.

In sum, efforts must be made to root out the menace of liquor from every walk of life. Shutting down liquor units in one stroke or continuing with the present scenario is not healthy to the society. It has to be slowly moved out through a committed and a planned exercise.
Few minutes spent on observing the number of wine shops which we cross everyday and the number of people who drink among our relatives and friends will tell us that the society is slowly getting drowned.


Drinking is a man’s choice but the government should not take pain in serving this poison to its own people. Revenue earned through TASMAC is meagre compared to the damage it does to our society. So, it is high time that serious steps are taken to close the shutter.

References:
 (1) http://www.frontline.in/multimedia/dynamic/02269/lFL23_tables_123_e_2269322g.jpg
(2) http://www.thehindu.com/news/national/tamil-nadu/freebies-pose-a-threat-to-tamil-nadus-fiscal-health/article7046311.ece?ref=relatedNews
(3) http://articles.economictimes.indiatimes.com/2013-02-10/news/37008265_1_tasmac-foreign-liquor-liquor-market

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