Andhra govt notifies new liqour policy, calls bids for pvt retail outlets
Informist, Tuesday, Oct. 1, 2024
--Official: Andhra govt to finalise pvt retail liquor shop bids by Oct 11
--Official: Andhra govt offering 3,396 retail liquor shops to pvt entities
--Official: Andhra govt call bids for retail liquor shops from pvt entities
--Official: New Andhra liquor policy to allow top brands, pvt retail shops
--Official: Andhra govt notifies new liquor policy effective Tuesday
By Narayana Krishna
HYDERABAD - The Andhra Pradesh government notified a new liquor policy late on Monday, allowing private retail outlets to sell liquor, besides paving the way for sale of top brands in the state, a senior official of the state excise department told Informist. The new policy will be in force for two years, the official said.
The state government has issued a confidential ordinance, allowing private retail participation in liquor trade, the official said. A copy of the ordinance was reviewed by Informist.
Under the policy, the state government issued a notification offering 3,396 retail shops across the state to the private sector through an e-auction. The government has invited bids from interested parties from Tuesday, the official said. The bids will be finalised on Oct. 11 and the new private liquor shops will be operational from Oct. 12, the official said.
After N. Chandrababu Naidu assumed charge as the state's chief minister, the liquor and beverages industry lobby, including Indian Spirits & Wines Association of India, submitted an appeal to the Andhra Pradesh government, requesting that procurement from top brands be resumed. The new policy is likely to allow all major brands of Indian Made Foreign Liquor, beers, and other alcoholic beverages into the state, the official said.
Under the new policy, Andhra Pradesh can now buy branded liquor from well known manufacturers such as United Spirits Ltd, United Breweries Ltd, Radico Khaitan Ltd, Tilaknagar Industries Ltd, Som Distilleries and Breweries Ltd, and Globus Spirits Ltd, the official said. According to reports, the state's share in overall liquor sales in the country is around 10%.
Alcohol sales in Andhra Pradesh are regulated by the state government, with Andhra Pradesh Beverages Corp Ltd acting as the nodal agency. It acquires various brands from producers and distributes them to retail outlets, which were run by the government itself.
Upon assuming office in 2019, the Y.S. Jaganmohan Reddy-led administration had introduced a phased prohibition on alcohol sales, reducing the number of outlets from 4,380 to 2,934, all of which are government-owned. As part of the prohibition strategy, the government pledged to eventually restrict liquor sales to five-star hotels. The state ceased purchasing alcohol from well-known companies with a strong market presence and brand value. However, this led to smuggling of branded liquor and penetration of unknown local brands.
The government was criticised for introducing a new policy that allowed the sale of obscure, locally produced brands at higher prices. This resulted in a rise in sales of non-duty-paid alcohol and low-quality illicit products, and increased smuggling from neighbouring states. End
