*Andhra Pradesh introduces new policy to curb illicit liquor*
by Ashis Sinha
Amrawati: The Andhra Pradesh government has unveiled a new liquor policy set to take effect on October 12, 2024, aimed at modernizing the state’s liquor retail landscape and combating illicit alcohol sales. Under the new policy, affordable liquor options priced at Rs 99 or less will be introduced, encouraging national suppliers to create brands within this price range.
The policy marks a significant shift from current excise regulations by allowing private retailers to operate liquor stores, similar to practices in Haryana. The government anticipates that this initiative will generate approximately Rs 5,500 crore in revenue for the state.
In total, 3,736 retail outlets are planned to be established across Andhra Pradesh, as part of the strategy to rejuvenate a market that has seen declining sales over the past five years. Officials aim to position the state among the top three liquor markets in India.
To ensure regulatory stability, the policy will be in effect for two years, fostering participation from a broader range of retailers. Licences will be allocated through an online lottery system, with fees varying from Rs 50 lakh to Rs 85 lakh depending on the store category. Retailers will benefit from a 20% profit margin on sales, while 12 premium stores will receive five-year licences for a fee of Rs 1 crore.
The beer sector in India is poised for renewed investments in Andhra Pradesh, with estimates suggesting that setting up new breweries could involve expenditures of Rs 300 crore to Rs 500 crore. This indicates a potential resurgence in the state’s liquor market following a period of stagnation.