Why Andhra came up with new liquor policy: Widening revenue gap with Telangana, funding welfare schemes promised by Naidu

Between 2014 and 2019, the gross spread betwixt Telangana and Andhra Pradesh successful presumption of liquor income was `4,186 crore. In 2014, Andhra Pradesh was bifurcated and Telangana was formed. Interestingly, aft the split, Chandrababu Naidu had go the CM. From 2019-24, erstwhile Y S Jagan Mohan Reddy was the CM, the authorities authorities had taken implicit liquor commercialized successful an effort to trim liquor consumption, a determination which did not output the expected results.

However, from 2019 to 2024, the excise gross quality betwixt the 2 states went up exponentially by astir 10 fold to `42,762 crore, an excise section authoritative said. This was 1 of the factors Andhra Pradesh decided to formulate Excise Policy 2024-26.

The gross generated volition spell into backing payment schemes successful Andhra Pradesh, a root successful the authorities said. “With the easing of the liquor argumentation we are expected to lucifer the gross generated by states similar Telangana and Haryana,” the root said.

The excise section authoritative said, “Even if we had continued with the liquor argumentation of 2014-19, the authorities would person earned an further `18,860 crore successful revenue. But the caller liquor argumentation volition marque definite that we lucifer Telangana’s revenues successful the adjacent 2 years.”

According to excise section officials, the authorities saw a diminution successful liquor income due to the fact that of the immense inflow of amerciable liquor into the state. According to authorities records, implicit the past 5 years, an estimated 1.78 crore litres of amerciable liquor was seized. But the magnitude of liquor seized was conscionable “10% to 20% of the existing inflow of amerciable liquor”, excise section officials explained.

“Moreover, arsenic the authorities was selling liquor it failed to make gross done exertion and licence fees. With the caller liquor policy, we person already raked successful `1,800 crore successful exertion fees and `2,000 crore successful licence fees,” an excise authoritative said.

Under the caller policy, backstage retail operations person restarted with 3,736 shops notified crossed Andhra Pradesh. “The authorities has besides invited antithetic known brands to commercialized successful the state,” excise section officials said.

The authorities has besides decided to present low-cost brands — to beryllium sold astatine Rs 99 per 4th of a vessel arsenic per the argumentation — to forestall radical from turning to adulterated liquor. For costly brands, the authorities has besides decided to let liquor malls. The model, an excise authoritative said, has been adopted by galore states, including Haryana.