The Hindu Business Line : TN distillers face base liquor glut

Chennai, Oct. 7 Distilleries in Tamil Nadu are worried as liquor manufacturers have not bought extra neutral alcohol, the raw material for making Indian-Made Foreign Liquor, for over a week.

According to industry sources, storage tanks in some of the distilleries are overflowing and unless liquor manufacturers start lifting stocks, production will have to be stopped in the next few days.

Normally 3-4 lakh litres of ENA are sold daily to liquor manufacturers at about Rs 30 a litre.

While liquor manufacturers were not available for comment, distillers say the move is a prelude to the State Government permitting ENA imports from neighbouring States. This follows concerns that distilleries would have to stop production during the monsoons to avoid pollution issues.

However, distillers point out that over the last two seasons they have been asked by the authorities to continue operations even during the monsoons to ensure continuous supply of alcohol for IMFL manufacture.

Worried over the proposed move to permit imports, distillers say that with abundant production locally there was no reason for liquor manufacturers to bring in stocks, unless the objective is to bring down prices.

The distilleries attached to sugar mills produce over 18 crore litres of alcohol a year while liquor manufacturers buy about 10 crore litres.

According to official statistics, there are 14 distilleries in Tamil Nadu, with nine attached to sugar mills.

More Stories on : Breweries | Tamil Nadu

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