Andhra govt plans new liquor policy, to buy from top cos, says source
Informist, Thursday, Jul 25, 2024
--Source: Andhra to resume procurement of liquor from top cos, brands
--CONTEXT: Andhra stopped buying liquor from top cos, brands in 2019
--Source: Andhra govt to announce new liquor policy soon
--Source: Andhra to replace local brands with trusted, popular ones
--Source: Andhra to resume procurement of beer from United Breweries
--Source: Andhra to start buying liquor from United Spirits, others
--Source: Andhra mulls buying liquor from Radico Khaitan, Globus Spirits
--Source: Andhra to buy liquor from Tilaknagar Ind, GM Breweries
By Narayana Krishna
HYDERABAD - The Andhra Pradesh government is planning to resume procurement of liquor from the country's top manufacturers and reputed brands, replacing the current local brands, a state government source told Informist. Chief Minister N. Chandrababu Naidu is keen on overhauling the state's excise policy and a new one will soon be announced that will revise procurement, pricing, and quality standards.
The state government intends to purchase 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, Globus Spirits Ltd. The aim is to replace local brands with trusted and popular ones, under a revised pricing structure.
State government officials have already initiated talks with popular distilleries and breweries, so that they can begin supplies, the source said.
On Wednesday, Chief Minister Naidu presented a white paper in the state assembly on the excise department and issues related to liquor procurement and pricing. He alleged that the state had lost around 188 bln rupees in revenue between 2019 and 2024 when popular brands were replaced with local ones, which later led to illegal trade. Naidu indicated that the government would revise liquor prices and change the procurement process to ensure quality products.
Sale of liquor in Andhra Pradesh is controlled by the state government, with Andhra Pradesh Beverages Corp Ltd serving as the nodal agency. This agency procures various brands from manufacturers and supplies them to retail stores.
After coming to power in 2019, the Y.S. Jaganmohan Reddy-led government announced a phased prohibition on liquor sales, reducing the number of sales outlets from 4,380 to 2,934, that too government-owned. The state government promised to limit liquor sales to five-star hotels over a period of time as part of the prohibition.
In this process, the state stopped procuring liquor from well-known companies with significant market and brand value. However, the government faced criticism for implementing a new policy that allowed the sale of unknown, locally made liquor brands at higher prices. This led to an increase in the sale of non-duty paid liquor and illicit, poor-quality products, besides smuggling from neighbouring states.
Despite appeals from industry bodies like the Indian Spirits & Wines Association of India, the state government did not procure Indian made foreign liquor, wines, and beer from reputed companies, although they had the license to sell their products in the state. The procurement agency has not placed any significant order with them for the past five years.
The new government has yet to decide whether to continue selling liquor through government shops or auction licenses to private traders. The new policy is expected to be formulated once it gets clarity on this, the source said.
Reacting to the news, shares of Tilaknagar Industries extended gains to 6.6% at 1408 IST from 2?rlier on the National Stock Exchange. Shares of United Breweries and United Spirits were up 1.8?ch at 2,056.85 rupees and 1,442.10 rupees respectively. Shares of Som Distilleries were up 0.4% at 111.20 rupees. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
