The Andhra Pradesh government announced a new liquor policy on Tuesday, permitting private retailers to sell spirits similarly to Haryana and other states, with expectations of generating INR 5,500 crore in revenue.
Complete͏͏ Overhaul͏͏ of͏͏ Excise͏͏ Policy:
In͏͏ a͏͏ complete͏͏ revamp͏͏ of͏͏ its͏͏ excise͏͏ policy,͏͏ drawing͏͏ on͏͏ best͏͏ practices͏͏ from͏͏ other͏͏ states,͏͏ the͏͏ government͏͏ has͏͏ opted͏͏ for͏͏ the͏͏ privatisation͏͏ of͏͏ liquor͏͏ retail,͏͏ with͏͏ 3,736͏͏ retail͏͏ shops͏͏ approved͏͏ throughout͏͏ the͏͏ state.͏͏ The͏͏ new͏͏ policy͏͏ is͏͏ set͏͏ to͏͏ take͏͏ effect͏͏ on͏͏ October͏͏ 12,͏͏ 2024,͏͏ according͏͏ to͏͏ the͏͏ government͏͏ notification.
Continue͏͏ Exploring:͏͏ Andhra Pradesh to͏͏ unveil͏͏ new͏͏ liquor policy focusing͏͏ on͏͏ quality͏͏ and͏͏ premium͏͏ outlets
Affordable͏͏ Options͏͏ for͏͏ Low-Income͏͏ Groups:
Through͏͏ this͏͏ policy,͏͏ the͏͏ government͏͏ aims͏͏ to͏͏ offer͏͏ affordable͏͏ options͏͏ for͏͏ low-income͏͏ groups.͏͏ The͏͏ Andhra͏͏ Pradesh͏͏ government͏͏ has͏͏ introduced͏͏ low-priced͏͏ liquor͏͏ at͏͏ INR͏͏ 99͏͏ or͏͏ less͏͏ to͏͏ reduce͏͏ the͏͏ demand͏͏ for͏͏ illicit͏͏ alcohol,͏͏ while͏͏ also͏͏ encouraging͏͏ national͏͏ suppliers͏͏ to͏͏ launch͏͏ their͏͏ brands͏͏ at͏͏ this͏͏ price͏͏ point.
Aiming͏͏ to͏͏ Boost͏͏ Sales:
The͏͏ new͏͏ liquor͏͏ policy͏͏ is͏͏ anticipated͏͏ to͏͏ reverse͏͏ the͏͏ sales͏͏ decline͏͏ experienced͏͏ over͏͏ the͏͏ past͏͏ five͏͏ years,͏͏ positioning͏͏ the͏͏ state͏͏ among͏͏ the͏͏ top͏͏ three͏͏ markets,͏͏ according͏͏ to͏͏ companies͏͏ and͏͏ analysts.
The͏͏ policy͏͏ will͏͏ be͏͏ in͏͏ effect͏͏ for͏͏ two͏͏ years,͏͏ fostering͏͏ stability͏͏ and͏͏ predictability͏͏ in͏͏ the͏͏ regulatory͏͏ environment,͏͏ which͏͏ is͏͏ expected͏͏ to͏͏ boost͏͏ participation͏͏ from͏͏ retailers.
Andhra͏͏ Pradesh’s͏͏ liquor͏͏ market͏͏ has͏͏ halved͏͏ over͏͏ the͏͏ past͏͏ five͏͏ years͏͏ due͏͏ to͏͏ continuous͏͏ price͏͏ increases͏͏ and͏͏ preferences͏͏ for͏͏ local͏͏ players.͏͏ The͏͏ Beer͏͏ Industry͏͏ Association͏͏ of͏͏ India͏͏ anticipates͏͏ renewed͏͏ investment͏͏ interest͏͏ in͏͏ the͏͏ state,͏͏ potentially͏͏ worth͏͏ thousands͏͏ of͏͏ crores,͏͏ as͏͏ the͏͏ cost͏͏ of͏͏ each͏͏ brewery͏͏ ranges͏͏ from͏͏ INR͏͏ 300͏͏ crore͏͏ to͏͏ INR͏͏ 500͏͏ crore.
Lottery͏͏ System͏͏ for͏͏ Licensing:
Licences͏͏ will͏͏ be͏͏ distributed͏͏ via͏͏ an͏͏ online͏͏ lottery͏͏ system,͏͏ featuring͏͏ four͏͏ categories͏͏ with͏͏ fees͏͏ between͏͏ INR͏͏ 50͏͏ lakh͏͏ and͏͏ INR͏͏ 85͏͏ lakh.͏͏ Shop͏͏ owners͏͏ can͏͏ expect͏͏ a͏͏ profit͏͏ margin͏͏ of͏͏ 20%͏͏ on͏͏ their͏͏ sales.͏͏ Additionally,͏͏ the͏͏ government͏͏ plans͏͏ to͏͏ issue͏͏ licences͏͏ for͏͏ 12͏͏ premium͏͏ shops,͏͏ each͏͏ valid͏͏ for͏͏ five͏͏ years,͏͏ with͏͏ a͏͏ fee͏͏ of͏͏ INR͏͏ 1͏͏ crore.
The͏͏ new͏͏ excise͏͏ policy͏͏ may͏͏ result͏͏ in͏͏ substantial͏͏ market͏͏ share͏͏ increases͏͏ for͏͏ larger͏͏ players.
