Andhra Pradesh Increases Liquor Retailer Profit Margins and Introduces New Initiatives
The Andhra Pradesh government has announced a major decision to increase the profit margin for liquor retailers in the state, a move that is expected to bring relief to shop owners. Chief Minister N. Chandrababu Naidu, in a recent review meeting with the Excise Department, approved raising the retailer profit margin from 10.5% to 14%, aligning it with the rates in neighboring Telangana. This change comes after retailers voiced concerns over financial losses and called for higher margins to improve their profitability.
In the meeting, several key decisions were made, including fulfilling an electoral promise to allocate 10% of liquor outlets to specific caste communities. A total of 3,396 liquor outlets operate in the state, and around 340 outlets will now be reserved for communities such as Goud, Shetty Balija, Ediga, Gamalla, Kalali, Sri Sayan, Shegidi, Gowdlu, Yatha, and Sondi. The allocation will be based on the population distribution of these communities in respective areas.
Applicants for the liquor shop licenses will be able to apply for multiple outlets, but an individual will only be allotted one shop. The tenure for these licenses will extend until September 30, 2026. The framework for the allocation has already been finalized, and the Chief Minister has approved the issuance of the notification, which is expected to take place within a week.
Additionally, the state government discussed strategies to make liquor available at ₹99 per bottle. Despite a rise in sales each year, revenue generation has not met expectations due to the lower pricing of liquor. Chief Minister Naidu has directed officials to ensure the availability of affordable liquor across all outlets while maximizing revenue collection.
The review meeting also focused on tightening regulations against illegal “belt shops” and emphasized the use of advanced technology to monitor the production, supply, and sale of liquor, ensuring compliance with all legal requirements.
The meeting, held at the Chief Minister’s residence in Undavalli, was attended by Minister Kollu Ravindra and senior officials from the Excise Department. This comprehensive approach aims to streamline operations, increase revenue, and create a more equitable distribution of liquor outlets in Andhra Pradesh.
