Alcohol at Rs.99: Andhra Pradesh's New Liquor Policy

Andhra Pradesh is set to privatise liquor sales from 12th October 2024, aiming to increase revenue and promote safe drinking.

The Andhra Pradesh government, led by Telugu Desam Party (TDP) leader N Chandrababu Naidu, is set to introduce a new liquor policy from 12th October 2024. This policy is expected to bring significant changes to the way liquor is sold in the state.

Key Points of the New Policy:

1. Government Withdraws from Retail Liquor Sales: The state will no longer run liquor shops. Instead, the sale of liquor will be privatised.

2. Private Licences for Liquor Sales: Individuals, private companies, and shops can now apply for liquor sales licences. 

3. Affordable Liquor: 180 ml liquor bottles of all brands will be sold for just ?99 throughout Andhra Pradesh.

4. Policy Duration: The new excise policy will be in effect for two years, from 12th October 2024 to 30th September 2026.

Licence Allocation:

- The government has approved 3,736 private shop licences across the state, and a special lottery system will be used to allocate licences to applicants.

- 340 shops will be reserved for the Geetha Kulalu toddy-tapping community, promoting social equity.

- In addition, 12 premium store licences will be issued for high-end liquor sales, located in cities like Vijayawada, Visakhapatnam, Guntur, and others.

Financial Benefits for Retailers:

Retailers are expected to earn more with this policy. Their profit margins are likely to increase by 18-20% on the sale of Indian-Made Foreign Liquor (IMFL), Foreign Liquor (FL), beer, wine, and spirits.

Government’s Expectations:

The Andhra Pradesh government aims to generate a revenue of ?5,500 crore from this new policy. They also expect the policy to:

- Encourage safe and responsible drinking.

- Modernise liquor sales.

- Increase retailer participation.

- Reduce the illegal sale of alcohol.

- Boost tourism in the state.

Opposition Criticism:

The main opposition party, YSR Congress Party (YSRCP), has voiced its concerns. Varudu Kalyani, a member of the Legislative Council from YSRCP, criticised the new policy. She argued that privatising liquor sales would harm the public and suggested that the policy is meant for the financial benefit of the Naidu government.

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