MUMBAI, May 12 (Reuters) – India’s southern state of
Tamil Nadu, one of biggest alcohol markets in the country, has
ordered the closure of 717 state-run retail stores, roughly 15%
of its outlets, citing public welfare.
* Stores operated by the Tamil Nadu State Marketing
Corporation which are located within 500 meters of places of
worship, educational institutions and major bus terminals will
need to shut down, the government said.
* All alcohol retail stores in the state are operated by the
government.
* The decision was taken by Tamil Nadu’s new chief minister,
actor-turned-politician C. Joseph Vijay.
* The closure process, framed as a public welfare
initiative, is mandated to be completed within two weeks.
* Liquor industry sources say Tamil Nadu’s alcohol sales are
dominated by local brands, though foreign companies such as
Pernod Ricard and Diageo do have a presence in
the state.
* The change in policy comes as the liquor industry is
battling escalating costs from Iran war-linked disruptions and
seeking price hikes.
* Tamil Nadu is a key state for big foreign companies such
as Apple supplier Foxconn.
(Reporting by Dhwani Pandya. Editing by Aditya Kalra and Mark
Potter)
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