The auction of arrack and toddy shops, scheduled to begin on June 19 through online bidding, may not fetch high revenue for the government this year. It could hover around the previous year’s revenue of Rs 92 crore, sources said.
Though in the previous year, the revenue through auction had increased by 10 crore, it is not expected to be the same this year. In the previous years, shops bordering Tamil Nadu were bid out for high rates as the shops attracted several consumers from Tamil Nadu due to the price difference. But, strict enforcement by Tamil Nadu had reduced the profit margin of arrack shops on the borders.
As a result, the profit margin decreased considerably and many shops suffered huge losses last year, sources said.There are 100 arrack shops and 78 toddy shops in Puducherry, and 29 arrack shops and 30 toddy shops in Karaikal, all owned by the government.
The licences of those shops that are not renewed by the lessee before the online bidding would be auctioned. Currently, 10 arrack shops in Puducherry and two in Karaikal and 11 toddy shops in Puducherry and two in Karaikal applied for renewal.
The government fixed an additional penalty of Rs 10,000 for renewal of licence for arrack shops and `5,000 for toddy shops during the grace period, which began on June 1.
As many as 25 arrack shops and eight toddy shops have applied for renewal of licence.
The Excise Department had fixed an upset price enhancing the amount by five per cent. Though the response from arrack shop owners remained static in the past few years, toddy shops are dying due to non availability of toddy tappers and drinkers. The arrack consumption is around 1 to 1.5 crore litres.
The preference of the residents is shifting to cheap IMFL products like brandy. Those who are able to afford IMFL prefer to consume brandy which is available for an average price of Rs 30 for 180 ml bottle. Others go for arrack which is priced at Rs 10 for the same quantity.