The Andhra Pradesh government has rolled out a new liquor policy that allows private retailers to sell spirits, similar to what’s done in Haryana and other states. They’re expecting this change to generate about Rs 5,500 crore in revenue. The aim is to make alcohol more affordable for low-income groups, with prices set at Rs 99 or less. This move is also intended to reduce the demand for illegal alcohol, encouraging national suppliers to offer their brands at these price points.
The policy is designed to help reverse a decline in liquor sales over the past five years, with plans to position Andhra Pradesh as one of the top three liquor markets in the country. It will be in effect for two years, providing a stable regulatory environment that should attract more retailers.
Over the last five years, the state’s liquor market has shrunk significantly due to rising prices and a preference for local brands. The beer industry is optimistic about new investments in the state, as setting up a brewery can cost between Rs 300 crore and Rs 500 crore.
Licences for selling liquor will be allocated through an online lottery, with four different categories and fees ranging from Rs 50 lakh to Rs 85 lakh.
