Andhra Liquor Price Hike: Prices Of Alcohol Raised By 15% By State Excise Dept, Beer Stays At Rs 99

Andhra Liquor Price Hike:  The Andhra Pradesh Excise Department on Monday has ordered to hike the liquor prices in the state by 15% with an exception to the beer prices which costs Rs 99. It was agreed to include all categories in the hike. As a result, additional retail excise tax (AERT) will be levied on both Indian and international liquor.

It should be noted that, prior to the elections, the Telegu Desam Party vowed to reduce liquor prices imposed by the then-ruling YSCR government.

Andhra Pradesh collected roughly Rs 36,000 crore in liquor sales during the fiscal year 2023-24. After deducting payments to distilleries and employee salaries, the government retained Rs 28,000–30,000 crore. However, the introduction of private liquor outlets in October 2024 drastically diminished state revenue, a point expressed by the Finance Department when the coalition government took power last year.

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Despite warnings that privatisation could harm state revenues, the administration went ahead with the idea, opening nearly 3,000 private liquor outlets. Licensees were first offered a 20% commission on liquor sales, which led to increasing involvement. However, traders soon expressed worry about low profit margins and claimed government involvement in the industry.

With rising financial pressures, liquor store owners made an ultimatum in December 2024, threatening to suspend sales unless their commission was increased. In response, the excise department recommended a margin increase, which was reportedly agreed during Thursday's cabinet meeting. However, a formal statement has yet to be made according to the current election regulations.