The Rayalaseema region has emerged as the biggest contributor to liquor sales in Andhra Pradesh during the 2025–26 financial year, with five of its districts ranking among the top ten in the state.
According to excise department data, Sri Sathya Sai district recorded the highest liquor revenue, while Kurnool stood third. Along with Chittoor, these districts also exceeded their annual revenue targets, each achieving over 100% of their goals.
Beer consumption jumps significantly
Beer sales have seen a major surge across the state this year. Total sales grew by 77.32%, rising from 1.16 crore cases last year to 2.06 crore cases in 2025–26.
Officials noted that nearly 30% of total sales happened during January and February, indicating strong seasonal demand.
Revenue growth remains limited
Despite higher sales volumes, the increase in government revenue has been relatively modest. For the current financial year, the state had set a target of ₹29,500 crore. By March 9, 2026, around ₹26,623 crore had been collected—about 90% of the target.
One major reason for slower revenue growth is the shift in consumer preference towards cheaper liquor options. The ₹99-priced 180 ml bottles have gained popularity and now account for 18% of the market, leading to an estimated ₹467 crore loss in revenue.
Additionally, a reduction in the maximum retail prices (MRP) of several popular liquor brands has further impacted collections, causing an estimated ₹992 crore shortfall. The average price of a 180 ml bottle has dropped from ₹180 last year to ₹160 this year.
Overall excise income declines
While liquor sales revenue grew by 5.87%, the state’s total excise income declined due to a sharp fall in licence fees and related earnings. Last year, the government earned around ₹1,900 crore from such fees, which did not materialise this year, resulting in a 22.77% drop in total income.
Top performing districts (2025–26)
- Sri Sathya Sai – 112% of target achieved
- Paderu – 112%
- Kurnool – 111%
- Chittoor – 106%
- NTR district – 98%
- Anantapur – 97%
Conclusion
The data highlights two key trends in Andhra Pradesh’s liquor market: strong growth in consumption—especially beer—and a shift towards lower-priced products. While demand is rising, pricing changes and consumer preferences are putting pressure on overall government revenue.
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