Major Indian alcohol market Tamil Nadu shutters 15% of state's retail outlets

Tue, 12th May 2026 12:55

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)