AP is facing shortage of liquor; many Telangana distilleries are closing down
File photo of a liquor store - Picture for representation purpose
Hyderabad: After bifurcation of the state, both Telangana and Andhra Pradesh are facing a strange situation on the liquor issue. While Andhra Pradesh is facing shortage of liquor, in Telangana there is no work for the distilleries and many are on the verge of closing down. Export and import tax was levied on both states after the bifurcation.
In the united state of Andhra Pradesh liquor consumption is 60 per cent and beer consumption is 40 per cent in Seemandhra. Contrarily to this in Telangana liquor consumption is 40 per cent and beer consumption is 60 per cent. In Telangana there are 16 distilleries and six breweries and in the AP state there are 14 distilleries and two breweries. In the combined state 9,25,000 cases of liquor is being supplied to Seemandhra per month produced from the distilleries in Telangana.
In Andhra Pradesh, production capacity of distilleries is less and consumption of liquor is more. But in Telangana, production capacity of distilleries is more and consumption is less. After the state bifurcation both Telangana and Andhra Pradesh governments have imposed export and import taxes. For ordinary liquor Rs 57 and for premium liquor Rs 120 per case are the export and import taxes in both states. In the same way for beer import and export tax is Rs 40 per case. If from Telangana one case of liquor is supplied to Andhra Pradesh, in Telangana exporters have to pay Rs 57 and in Andhra Pradesh they have to pay Rs 57 as import tax.
The association of liquor and beer suppliers has made a representation to the Telangana government for exemption of export tax for a period of three years. But the Telangana government has rejected their request.
In recent days excise department is one of the biggest contributors of revenue to the government. The growth in revenue is substantial year after year. Presently the installed capacity in the Telangana state is 23, 47,500 cases per month against the license to produce 5300 lakh bulk litres. Out of total installed capacity 40% is supplied to Andhra Pradesh and 60% is being utilised for the Telangana in the combined state.
After Telangana government imposed the export tax the distilleries stopped the production and supply to Andhra Pradesh. In Andhra Pradesh, in the first quarter the excise revenue has come down by 15 to 20%. Some owners of Telangana distilleries wanted to shift their units to Seemandhra region.
But the Andhra Pradesh government rejected their proposal and wants to start new units. According to officials the reason for reduction of excise revenue is removal of belt shops. In Andhra Pradesh liquor sales are more in belt shops. At the same time Andhra Pradesh is facing scarcity of liquor as Telangana distillers stopped the supply. Association of liquor and beer suppliers General Secretary M Kameswar Rao said with the current levies, duties and taxes in force, it is not viable for any industry to supply IMFL to the Andhra Pradesh.
He said this will lead to capacity being idle in Telangana to the tune of 40% per month. He said keeping in view the unutilised capacities, some units may become sick leading to shutdown.
( Source : dc correspondent )
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