The Andhra Pradesh Prohibition and Excise Department is adopting a market-driven liquor procurement model, focusing on high-selling brands. Every registered liquor brand will be given a fair chance, but procurement will prioritize brands with the highest sales. This marks the launch of a new liquor policy under the N Chandrababu Naidu-led NDA government, replacing the previous policy. “We will procure based on demand, driven by market dynamics,” the official stated. Brands will initially supply 10,000 cases, with future procurement determined by sales data. Based on sales over the last three months, brands can sell up to 150 per cent of that amount.
All domestic and international brands are now entering the state as the new policy takes effect. Under the previous YSRCP government, the limited availability of popular brands and high costs drew complaints. Excise Minister K Ravindra noted that consumers were forced to buy limited options from 2019 to 2024. The new policy aims to provide more choices, including premium brands, with some 180 ml bottles priced as low as Rs 99.
Unlike the YSRCP’s cash-only system, digital payments will now be mandatory at all liquor shops. Since the new government took office, digital transactions at these shops have grown by 9 per cent monthly. On October 14, Andhra Pradesh allocated licenses to 3,396 liquor shops through a draw, collecting Rs 1,800 crore from 90,000 applicants. The state expects to earn Rs 20,000 crore from liquor sales and fees in fiscal 2024-25, essential revenue for the cash-strapped government. Chief Minister Naidu previously accused the YSRCP of causing an Rs 18,860 crore loss in excise revenue during its tenure. In contrast, the new policy aims to close the liquor income gap of Rs 42,762 crore with Telangana.