The Indian state introduces more open alcoholic beverage licensing with private sector retail

The legislature of the Indian state of Andhra Pradesh has approved a comprehensive excise policy on 18 September which will take effect from 1 October 2024. A cornerstone of the new policy is the introduction of more affordable liquor pricing, with the price of 180ml bottles capped at INR99.00 (USD1.18).

This move is intended to make alcoholic drinks more accessible while maintaining quality standards, said Chief Minister N. Chandrababu Naidu of the Andhra Pradesh cabinet, during a cabinet meeting held at the Amaravati Secretariat.

In addition, the new policy transitions to a private retail system, allocating licences for the operation of 3,736 retail outlets across the state. According to Information and Public Relations Minister K. Parthasarathy, 10% of these licences will be reserved for the toddy-tapper community through an online lottery system. Licences will be granted for two years via a lottery, with a non-refundable application fee of INR200,000.

The government will also establish 12 premium liquor shops outside Tirupati, a city in Andhra Pradesh, increasing the availability of high-end beverages. Sales hours will be restricted to 10 a.m. to 10 p.m., and licence fees will range from INR5 million to INR10 million, allowing shop owners up to a 20% profit margin. Premium shops will not be permitted within Tirupati, however.

The cabinet has also approved measures to ensure transparency in licence allocation, with Naidu instructing officials to prioritise quality and affordability. Criticism had been directed at the previous government administration for alleged misuse of the liquor policy, resulting in poor-quality liquor and increased health issues.