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TN Govt allows extra neutral alcohol imports from outside the State
Our Bureau
Chennai, Oct. 8 The Tamil Nadu Government has allowed liquor manufacturers in the State to import half their monthly requirement of extra neutral alcohol (ENA), the raw material used to make Indian Made Foreign Spirits (IMFS), according to a press release from the Tamil Nadu Liquor Manufacturers Welfare Association.
‘Positive step’
The association has said the move is a positive step by the State Government. It paves the way for bringing down ENA prices, which are at “exorbitant” levels.
Distilleries in the State have been charging over Rs 30-32 a litre of ENA while it costs Rs 21-22 in other States.
Also, the manufacturers have been incurring heavy losses because the liquor prices, which are controlled by the State Government, have not been hiked in the last three years, the release said.
Monopoly
Distillers have so far monopolised the business because the liquor manufacturers are not allowed to import spirits from outside the State.
Distillers keep the prices of ENA high despite Tamil Nadu being surplus in the raw material, molasses.
However, the State Government has now permitted liquor manufacturers to import half their monthly requirement of ENA from other States.
Cheaper imports
According to association representatives, this would mean that they would be able to buy about 65 lakh litres of ENA a month from cheaper sources.
ENA is available from Maharashtra and Karnataka at about Rs 27 a litre. This would help to bring down the prices within Tamil Nadu, industry sources added.
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