They claim they are only getting a 10% margin, which is barely enough to cover costs like rent and staff wages. The traders are questioning the numerous taxes imposed on their business, especially since the state government had opened up the liquor trade to private parties and issued licenses to 3,396 retail outlets. However, nearly 10 licensees have yet to establish their outlets.
A liquor trader from Bhimavaram stated that although the government issued a notification guaranteeing a 20% trade margin, they are not receiving it, leading to significant financial stress. Some traders have even borrowed money to obtain licenses, and without the promised profit margin, it’s becoming increasingly difficult to stay in business. As a result, there are talks of protesting by halting liquor stock purchases from depots.
In addition to the margin issue, some traders report facing pressure from various government departments to pay bribes for even minor offenses. They also highlighted a directive from the Chief Minister to impose hefty fines of Rs 5 lakh on traders who violate maximum retail price regulations or supply liquor illegally to unauthorized “belt shops.” While the government’s intentions are to curb such practices, traders feel some are exploiting the situation for personal gain.
A trader from Guntur mentioned that despite numerous discussions, there has been no resolution on the 20% margin issue, and they are considering legal action.
Excise officials have stated that the final decision on the margin is in the hands of the state government. Meanwhile, some liquor outlets are still operating due to interim relief granted by the Andhra Pradesh High Court regarding a rule that requires liquor stores to maintain a 100-meter distance from religious and educational institutions. The court’s final ruling on this matter is set for December 20.
