Excise department will own 10 per cent shops in every district
The wine dealers in state see the new excise policy as an effort by the government to eliminate dealers and take over the entire liquor trade over a period of time.
Vijayawada: The wine dealers in state see the new excise policy as an effort by the government to eliminate dealers and take over the entire liquor trade over a period of time, while the excise department claims it intends to check loss of revenue by curbing illegal practices of wine dealers. As per the new policy, the government has increased license fee and also made submitting IT returns along with application for licenses mandatory.
This is a mere shock to the aspirants who file multiple applications and get one or two shops depending on their luck. The excise department would own 10 per cent of the total number of existing shops in each district and allot the rest through lottery. However, the 10 per cent shops would be placed among the cluster of wine shops that exist mostly in cities and mandal headquarters. This could force wines shops at a mandal headquarter to sell everything at MRP as the government outlet nearby sells it at MRP, the lowest price. However, it may not be possible in the cities where more number of shops exists.
In Krishna district, which has over 40 mandals, there are 335 shops and government would run 33. However, 33 shops could not be allotted at all city centres and mandal headquarters. This likely shows no impact on wine dealers violating the rule and selling for more than MRP. It may not be possible for the government run shops to compete with private traders who are into business since decades.
Meanwhile, the wine dealers are concerned about the trade margin, which remained same over years. “An average of 21 per cent trade margin is given to dealers since 2005 and they demand at least 30 per cent in view of increasing cost of maintenance, license fee, lottery system and others. While the license fee was around Rs 2.5 lakh for area of 10, 000 population a decade ago, currently the license fee for shop in area of 5, 000 population is Rs 30 lakh but still trade margin remains same,” said Mr R Subba Rao, president of AP State Wine Dealers Association.
( Source : deccan chronicle )
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