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Liquor revenue surges despite efforts to reduce consumption in Andhra Pradesh

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On Tuesday, the state government conveyed to the assembly that the revenue generated from liquor sales in Andhra Pradesh has consistently increased over the last five years.

Revenue has seen a substantial growth of almost 36 percent since 2019. Nonetheless, Deputy Chief Minister (Excise) K. Narayana Swamy emphasized the government’s unwavering commitment to a policy aimed at reducing alcohol consumption levels in the state, affirming its continuity in the future.

He mentioned that the state government has undertaken various initiatives to curtail alcohol consumption. This includes the closure of approximately 43,000 belt shops and a reduction in the number of retail outlets from 4,380 to 2,934. In response to questions from TDP members Adireddy Bhavani, Anagani Satyaprasad, Dola Balaveeranjaneya Swamy, Nimmala Ramanaidu, Bendalam Ashok, and K Atchannaidu during the question hour on Tuesday, the Deputy Chief Minister also noted that the government has eliminated permit rooms, which were facilities for consuming liquor adjacent to retail shops.

He mentioned that they have additionally reduced the operating hours of retail liquor outlets, which were previously exclusively managed by the state beverages corporation.

He stated that the government had increased penalties for excise violations in order to deter illegal sales.

“We are committed by an owed policy to reduce alcohol consumption and are taking all possible measures to bring down consumption,” said Narayana Swamy.

Nevertheless, the Deputy Chief Minister pointed out that revenue from liquor sales has shown an upward trend over the past five years. Specifically, he mentioned that in 2019, revenues stood at approximately INR 17,473 crore, which increased to INR 17,890 crore in 2020. Furthermore, the figures climbed to INR 21,432 crore in 2021 and reached a remarkable INR 23,785 crore in 2022.

He indicated that the state government had accumulated INR 10,764 crore up to August 2023, covering the first five months of the current fiscal year. This translates to an average of approximately INR 2,152 crore per month. If this ongoing pattern persists, it is anticipated that the total revenue from liquor sales for the fiscal year 2023-24 could surpass the INR 25,000 crore milestone.

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