Andhra Pradesh: Liquor sales boom, revenues soar as Prohibition goes

Amaravati: Liquor sales in Andhra Pradesh are booming again, raking in much-needed revenue.

The average revenue touched Rs 2,370 crore a month in the first seven months of the 2022-23 financial year from Rs 2,085 crore in the corresponding period last year, according to data compiled by AP Beverages Corporation Limited (APBCL).

While 347.75 lakh cases of Indian Made Liquor (IML) and beer were sold in 2021-22, the number touched 274.71 lakh cases between April and October this year. With this, the APBCL is expected to earn a record Rs 28,440 crore by this fiscal year-end from Rs 25,023.44 crore in 2021-22, said the data.

After promising total Prohibition in three phases from 2019, the Y S Jagan Mohan Reddy government reversed the policy last year and limited it only to restriction as it escrowed liquor revenue to secure loans of over Rs 14,000 crore.

In the name of COVID-19, the government increased liquor price by 75 per cent in May 2020 to augment the shortfall in overall revenue, in addition to the 25 per cent hike the previous year.

But, in 2021, it reduced the price by about 40 per cent to check smuggling from neighbouring States where liquor was cheaper and of quality brands. This contributed to enhanced sale of IML in the last couple of years even as beer consumption took a dip compared to 2019.

The government, however, has a totally different take on the issue. It quoted Chief Minister Y S Jagan Mohan Reddy as saying that sale has reduced due to hike in price and other measures.

Revenue (excise) Special Chief Secretary Rajat Bhargava told PTI that the government was committed to the policy of reduction in consumption of liquor. "A mix of intelligent decisions and a more efficient system with no leakages has resulted in increase in revenue. We have rationalised the rates and reduced the number of shops from 4,500 to 2,934,” he said.

He said a third-party audit and stock audit were being carried out to keep tabs on sales.