Date: August 08, 2024

AP’s New Liquor Policy: Changes in Brands and Pricing

Overview of AP’s New Liquor Policy

The Andhra Pradesh (AP) cabinet has approved a new liquor policy set to launch on October 1, 2024. This policy introduces significant changes to how liquor is sold and regulated in the state.

Liquor Policy:Closure of Government Liquor Stores

Under the new policy, all existing government liquor stores will be closed and transferred to private vendors. This move aims to streamline the liquor distribution process and improve service quality. Currently, only bars are operated by private vendors, with their licenses extended until December this year. The policy mandates one bar for every 50,000 households. However, with increased illicit liquor sales, there are plans to adjust this ratio to one bar for every 20,000 to 30,000 households.

Liquor Policy:Changes in Liquor Brands

The new policy will phase out low-quality liquor brands such as Boom Boom, President, and Three Capital from the market. Instead, it will introduce premium brands like Royal Stag, ensuring a higher standard of liquor availability. This shift is intended to enhance consumer experience and reduce the prevalence of cheap, low-quality liquor.

Adjustments in Liquor Pricing

Previously, the government reportedly sold Rs 60 worth of liquor for around Rs 200, aiming to reduce alcohol consumption. This strategy failed to achieve its goal, prompting Chandrababu Naidu to propose a committee to review and possibly restore previous pricing levels. Negotiations with distilleries are underway to adjust liquor prices to make them more affordable.

Reintroduction of Permit Rooms

The previous administration under Jagan Mohan Reddy eliminated permit rooms, leading to increased alcohol consumption in public places and related nuisances. The new TDP government plans to reintroduce permit rooms, focusing more on urban areas than rural ones. This move is expected to control crime rates associated with excessive alcohol consumption and improve public order.

Implementation and Expected Impact

The new liquor rules will be implemented from October 1, 2024, and is expected to bring substantial changes to AP’s liquor industry. By transitioning to private vendors, removing cheap brands, and reintroducing permit rooms, the policy aims to address both quality and regulatory issues. The effectiveness of these changes will be closely monitored as the state transitions to this new system.

Conclusion

AP’s new liquor policy represents a significant shift in how alcohol is managed and sold in the state. With the closure of government stores, the introduction of premium liquor brands, adjustments in pricing, and the return of permit rooms, the policy aims to improve overall liquor management. The changes are anticipated to impact consumers and the liquor industry significantly, making October 1, 2024, a pivotal date for Andhra Pradesh.