Andhra Pradesh is set to shake up its liquor industry with a new excise policy that aims to boost revenue and empower local communities. This policy, which comes into effect on October 12th, will bring about significant changes in the way liquor is sold and consumed in the state.
One of the key aspects of the new policy is the introduction of affordable liquor prices. Consumers can now purchase 180ml of any liquor brand for a fixed price of ₹99. This move, inspired by similar policies implemented in states like Haryana, is anticipated to increase alcohol consumption and generate a substantial revenue increase for the state government. The government expects this new policy to rake in a staggering ₹5,500 crore in revenue.
The policy also grants licenses to 3,736 private shops across Andhra Pradesh to sell liquor at retail prices. These licenses will be granted through a selection process and will be valid for a period of two years, from October 12, 2024, to September 30, 2026. This move is expected to further increase the availability of liquor and contribute to the projected revenue increase.
In a move aimed at promoting social justice and empowering the ‘Geetha Kulalu’ community (a toddy tapping community), the new policy reserves 340 shops exclusively for them. These shops will be allocated through a lottery system, allowing applicants to apply for multiple shops. To participate in the lottery, applicants must submit a non-refundable fee of ₹2 lakh for each shop.
Furthermore, the new excise policy also introduces a special category for premium liquor stores. The state government will issue 12 licenses for these stores, which will be located in major cities like Vijayawada, Visakhapatnam, Rajamahendravaram, Kakinada, Guntur, Nellore, Kurnool, Kadapa, Anantapur, and other cities as notified by the government. These stores will offer a premium retail experience for consumers seeking a more luxurious liquor shopping environment.
The implementation of this new excise policy is expected to have a significant impact on the liquor industry in Andhra Pradesh. The affordable prices are likely to attract more consumers, while the licensing of private shops and the allocation of shops to the ‘Geetha Kulalu’ community are anticipated to create new opportunities and promote economic growth. It remains to be seen how the policy will be received by the public and how it will shape the future of the liquor industry in the state.
