Tasmac Scraps Weighted Indent System to Order Equally From All Liquor Suppliers
The state-owned Tamil Nadu State Marketing Corporation (Tasmac) in Chennai has scrapped its conventional weighted average indent system for procuring beer and ordinary Indian-made foreign spirits (IMFS). In its place, the corporation has transitioned to a new system on a trial basis, which distributes procurement orders equally among all eligible suppliers.
The policy shift was introduced to address ongoing consumer complaints regarding the limited variety of liquor and beer available at Tasmac retail outlets. Additionally, the change aims to counter allegations of favoritism toward specific manufacturers and to establish a level playing field for all industry players.
Prior to this trial, Tasmac utilized a three-month weighted average formula to determine and raise indents for all liquor and beer varieties. This system drew supplies from 11 distilleries and six breweries. Under the old formula, procurement orders were calculated by comparing the three-month sales average of each individual brand against its sales performance in the previous week.
This conventional system faced significant criticism from various industry players. Critics alleged that the weighted average formula inherently favored certain manufacturers over others, restricting market access for smaller or newer brands.
The scale of Tasmac's operations is substantial, with daily sales averaging approximately 1.4 lakh cases of beer and 1.9 lakh cases of IMFS. Each of these cases contains about eight liters of liquid.
In response to the criticism, Tasmac officials operating under the TVK regime began exploring alternative procurement methods to ensure fairness. The new trial system equally divides procurement orders across all beer varieties and the ordinary range of IMFS varieties.
According to a Tasmac official, the ordinary range of IMFS was specifically selected for this trial because it constitutes a massive share of the market, accounting for nearly 70% of the corporation's overall sales. The trial is now underway as officials monitor its impact on product variety and market fairness.
