Tamil Nadu’s State-run liquor monopoly, TASMAC, is under fresh scrutiny—this time from the Competition Commission of India (CCI)—over allegations that it’s playing favorites in its beer racks, raising concerns about limited consumer choice and a potentially skewed market.
The CCI, in an order passed on March 25, has greenlit an investigation into TASMAC’s beer procurement practices. The order, issued under Section 26(1) of the Competition Act, 2002, comes in response to a complaint filed by Chakra R Prabakaran, who accused the state liquor behemoth of tilting the playing field in favor of select breweries.
At the heart of the complaint is a simple but troubling allegation: TASMAC, which runs over 5,000 liquor shops across Tamil Nadu, heavily favors brands like SNJ 10000 and British Empire from SNJ Breweries and Kals Breweries—while dozens of other registered labels gather dust, unseen and unsipped.
According to the CCI, preliminary findings show “substance” in these accusations. The data reveals a trend: the combined market share of SNJ and Kals surged from 40.22% in 2021-22 to a commanding 56.76% in 2023-24. This dominance, according to the commission, may point to an abuse of TASMAC’s powerful position in the market—particularly given that only 4 to 5 out of 46 approved beer brands are widely available in stores.
While TASMAC has defended its methods—saying its beer orders are generated through an automated system based on a weighted average of past sales and stock levels—the CCI isn’t fully convinced. It highlighted that a monopoly, left unchecked, can restrict competition by its very structure, regardless of how “automated” its processes may be.
Public domain reports have echoed these concerns. A notable one from May 2023 flagged how customers often struggle to find popular beer brands, even though the TASMAC website boasts a broader selection. A 2014 Madras High Court ruling had previously warned against such limited offerings, urging the state body to offer beer “a-la-carte,” allowing drinkers to choose rather than settle.
According to the CCI, what’s available on paper doesn’t match what’s stocked in reality. Despite 38 brands being listed, most stores are awash with just a handful—mainly from two manufacturers. Popular labels like Kingfisher and Zingaro, while still around, have seen their shelf space shrink significantly.
Now, the Commission has ordered a 60-day deep-dive by its Director General. The probe will focus on procurement records, sales figures, and supplier agreements to determine whether TASMAC is deliberately squeezing out rival brands.
This isn’t the only heat TASMAC is facing. The Enforcement Directorate has also turned up the pressure, conducting raids earlier this month and accusing the corporation of financial misdeeds totaling over ₹1,000 crore. The allegations include dodgy tenders, stashed cash, and inflated retail pricing.
A related petition is currently pending before the Madras High Court, adding another layer of legal uncertainty for the state’s liquor monopoly.
For now, one thing’s clear: in the battle over beer in Tamil Nadu, the taps may be open—but the flow is anything but free.
