Liquor traders in Andhra Pradesh are unhappy because they’re receiving lower profit margins than the promised 20%. They expected to earn a specific percentage on their sales, but recent changes have left them feeling shortchanged. This has sparked frustration among the traders, who are now voicing their concerns about the situation
Liquor traders in Andhra Pradesh are expressing their frustration over receiving less than 10% profit margin on the issue price, despite being promised a 20% margin. This concern arose as sales began in the private sector on the first day of the new license period for 2024-26 under the government’s new liquor policy.
Traders have pointed out that their profit margins have decreased due to the introduction of additional taxes, such as a retail excise tax and a 2% rehabilitation cess. They warn that this situation could make the liquor business unprofitable, particularly in municipalities, except for the Tadikonda area in Guntur district.
Rayala Subba Rao, president of the Andhra Pradesh Wine Dealers Association, has urged the government to honor the promised 20% margin, suggesting that a clerical error may have led to the current confusion.
On the first day of sales, traders who had won liquor shop licenses through a lottery on October 14 started receiving stock, while some continued operating from their old locations until they find new ones. Many customers rushed to old shops only to find them closed, unaware that the new policy was in effect. Additionally, some customers complained that the price for 180ml bottles, which was supposed to be set at Rs 99, remained at the old price of Rs 120.
The excise department is now issuing IDs to new license holders, allowing them to order stock online. Fresh liquor supplies are being released, with some brands appearing in new outlets. The government has approved 3,396 retail liquor outlets and received nearly 90,000 applications, generating significant license fees for the state.
