Tag Archives: new excise policy

Pawan Kalyan Warns AP Retailers of Action if Liquor Sold Above MRP

Andhra Pradesh Deputy Chief Minister K. Pawan Kalyan has directed Excise Department officials to crack down on liquor shops charging prices above the Maximum Retail Price (MRP), calling the practice a clear violation of rules and a blow to the credibility of the government.

In a post on X on February 3, Kalyan said he had received complaints from across the State, including Kakinada district, alleging that certain outlets were selling liquor at inflated rates. Similar grievances, he noted, had been reported from several other districts.

After reviewing the complaints, the Deputy Chief Minister made it clear that liquor retailers must strictly adhere to government-prescribed pricing norms. “Selling liquor above MRP is not only against the rules but also damages the credibility of the government,” he observed, underlining that enforcement cannot be lax in a regulated sector like excise.

He instructed officials to maintain continuous surveillance of liquor outlets statewide and to initiate stringent action against shop owners found violating pricing norms. Enforcement, he emphasised, must be firm, consistent and visible to deter repeat offences. The State government, he asserted, would not tolerate deviations from prescribed rules and remains committed to ensuring transparency and compliance in the excise system.

Andhra Pradesh’s evolving excise landscape

The warning comes at a time when Andhra Pradesh’s excise policy is under renewed scrutiny. Over the past few years, the State has maintained tight control over the retail liquor trade, with the government playing a dominant role in retail operations and pricing structures. The policy framework has aimed at regulating consumption, curbing illicit trade, and increasing revenue mobilisation through calibrated pricing and monitored distribution.

Excise remains one of the State’s largest sources of tax revenue. In 2025, the state’s excise revenue was projected to reach  ₹33,882 crore. The excise revenue has seen a rise due to increased liquor sales and a new excise policy implemented in 2024. Periodic revisions in duty structure and retail pricing have been used both to shore up revenues and to streamline the product mix available in government-run outlets.

In recent policy cycles, the government has sought to balance revenue considerations with consumer transparency. Measures have included clearer display of MRP at retail counters, digitised billing systems in many outlets, and tighter monitoring of supply chains to prevent diversion and overcharging. Officials have also indicated that enforcement drives would focus on ensuring that consumers are not charged beyond the printed price, particularly in semi-urban and rural areas where monitoring gaps can emerge.

The latest directive from the Deputy Chief Minister signals a push to reinforce consumer-friendly practices within the existing framework. By stressing strict adherence to MRP and continuous surveillance, the government appears keen to send a message that revenue generation cannot come at the cost of regulatory discipline or public trust.

With complaints surfacing from multiple districts, the coming weeks are likely to see intensified inspections and possible penalties for errant retailers, as the administration seeks to tighten compliance across Andhra Pradesh’s vast excise network. ————-

Chandrababu Naidu

Andhra Pradesh’s New Excise Policy; Retail Back with Private Players

The Andhra Pradesh government led by N. Chandrababu Naidu on September 18 announced a new excise policy to come into effect from October 1, 2024, the highlights been retail sale by private players; availability of cheaper select brands starting from Rs. 99; setting up of premium liquor stores and expecting to generate revenue of Rs. 2,000 crore per year.

Reversing the decision of the previous YSR Congress Party (YSRCP) run government, the TDP government has claimed that there was a revenue loss of Rs. 18,860.51 crores from 2019 to 2024 due to a skewed policy. The AP government has fixed price of affordable liquor at Rs 99. The allocation of licenses will be done through an online lottery, and four license categories have been fixed with fees ranging from Rs 50 lakh-Rs 85 lakhs.

In a white paper, released earlier, the TDP said that the non-availability of Indian-made foreign liquor (IMFL) brands had resulted in an increase in sales of poor-quality brands and spurious substances. It may be mentioned that the YSRCP had promised prohibition in Andhra Pradesh in 2019, but only imposed restrictions on the liquor trade instead of complete prohibition.

Premium Liquor Stores To Get Nod

The new excise policy will be in force for two years. It will also allow for the setting up of premium liquor stores and alignment of liquor prices with Telangana and Karnataka. It also decided to reserve 10% retail outlets for toddy tappers and to open premium shops at 12 locations other than Tirupati.

The Minister for Information and Public Relations  K Parthasarathi said the NDA alliance promised to bring an excise policy that ensures the quality of liquor at affordable price. He alleged several irregularities took place in the previous government in sale of liquor at every stage.

“The cabinet decided to adopt a private retail system for sale of liquor as part of an attempt to increase management efficiency. Of the 3,736 retail outlets in the state, 10 per cent will be allotted to the toddy-tappers community.”

The new government expects to generate additional excise revenues following the implementation of the policy. In fact, Andhra Pradesh had seen a gradual growth year-on-year in excise revenue, up from Rs 17,473 crore in 2019-20, escalated to Rs 23,785 crore in 2022-23 fiscal, even as the YSRCP government was working on reduction in the consumption of alcohol.

Reversing Previous Government Notification

The previous government in a notification in November 2023 had avowed policy of reduction in the consumption of alcohol levels in the State. In order to realize the objective, the Government had taken several measures such as removal of belt shops, dispensing with permit rooms, which are meant for consumption of liquor in the vicinity of shops, removal of private players from the retailing by shop etc.

YSRCP Had Reduced Shops By About 33%

Further, the A.P. State Beverages Corporation Limited had been granted exclusive privilege of retailing of IMFL and Foreign Liquor by the shop from the appointed date i.e. 01.10.2019. Further, the Government had reduced the number of shops to 2934 i.e. by about 33%. Keeping in view the policy imperative and after careful examination of the proposals submitted by the Commissioner of Distilleries and Breweries & Managing Director, the A.P. State Beverages Corporation Limited decided that it will continue the retailing of IMFL & FL through the retail outlets.

The licence period of the Shops shall be one year from 01.10.2023 to 30.09.2024 with the Commissioner of Prohibition & Excise empowered to renew the existing retail outlets run by the APSBCL under Rule 8 of the A.P. Excise (Grant of licence of selling by shop and conditions of licence) Rules, 2019 on payment of annual licence fee.   The policy also said there will be no permission or renewal for shops on the road from Tirupathi Railway Station to Alipiri via RTC Bus Stand, Leelamahal circle, Nandi circle, Vishnu Nivasam, Srinivasam. Likewise, no Shop shall be permitted on the road from Leelamahal – Nandi circle – Alipiri – SVRR Hospital – SVIMS in Tirupathi Municipal Corporation area.

The APSBCL shall be permitted to establish walk-in shops (Elite Shops) in the State as per the requirement but without any change in the number of retail outlets permitted. The previous policy also mentioned that it would take up campaigns to educate the public on the evils of consumption of liquor and other intoxicants.