Andhra govt notifies new liquor policy, calls bids for private retail outlets

A new liquor policy is now in place in Andhra Pradesh with the state government notifying the new rules late on Monday. The new policy reverses the rules implemented by the previous government in the state and allows private retail outlets to sell liquor.

The new policy also paves the way for sale of top brands in the state and will remain in force for two years.

According to news agency Informist, the state government has issued a confidential ordinance, allowing private retail participation in liquor trade.

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, an official told Informist. The bids will be finalised on October 11 and the new private liquor shops will be operational from October 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. According to reports, the state's share in overall liquor sales in the country is around 10 per cent.

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 YS 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.

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.