AP Liquor Policy’s Focus on Healthy Growth, Not Revenue Alone: CM Naidu

VIJAYAWADA: Chief Minister N. Chandrababu Naidu on Monday said Andhra Pradesh’s liquor policy would aim at healthy and regulated growth, not merely the revenue from it.

Reviewing the functioning of the prohibition and excise department at a meeting he held at the secretariat, he said liquor should be treated like any other regulated product -- with public health, transparency and social responsibility at the core of policymaking.

The Chief Minister directed officials to re-examine salient aspects of the existing excise framework, including the lottery-based allotment of liquor shops, application fees, enhancement of retailer margins and the proposed Liquor Identification Number (LIN) system.

He asked them to study the feasibility of exempting Bar ARET (additional retail excise tax) as part of a rationalisation of the policy.

Naidu underlined the need for comprehensive reforms to curb the production and sale of illicit liquor, strictly control unauthorised belt shops, accelerate digitisation and integrate environmental protection into excise operations.

“Revenue alone should not dictate policy. Balanced growth with accountability and consumer safety is essential,” he said.

Taking a firm view of unauthorised belt shops, the CM ordered stringent action and asked officials to study the sub-lease model followed in Haryana to effectively curb the menace.

As part of the environmental protection efforts, the department is also examining the introduction of a Deposit Return Scheme (DRS), under which consumers would receive cash incentives for returning empty liquor bottles after consumption.

To prevent spurious liquor and irregularities, he wanted the introduction of a unique LIN for every liquor bottle at the earliest. The system could also address shortcomings in the existing HEAL (hologram excise adhesive labels) mechanism.

Geo-tagging of liquor supply, he said, would ensure end-to-end transparency, real-time tracking and rationalisation of outlets.

Officials told the CM that against a target of `8,000 crore in excise revenue between October 2024 and October 2025, the state realised `7,041 crore. From April 1 to Dec 17 the current 2025–26 financial year, liquor sales recorded an overall growth of 4.52 per cent.

IMFL sales increased by 19.08 per cent, while beer sales surged by 94.93 per cent. Revenues of `8,422 crore are projected to come in between December 18 and March-end. The financial year is expected to close with an overall growth of about 3 per cent.

Officials attributed the rise in revenue to the introduction of international brands and the availability of quality liquor at affordable prices, noting that Andhra Pradesh recorded the highest growth in IMFL and beer sales in South India.

At the same time, per capita liquor consumption in the State remains lower than in Telangana—2.77 litres compared to 4.74 litres.

Digital payments now account for 34.9 per cent of the liquor sales, with some districts reporting upto 40–47 per cent.

Naidu advised officials to further reduce cash usage by strengthening awareness and promoting digital modes across the state.

Ministers Kollu Ravindra and Kondapalli Srinivas, principal secretary (finance) Piyush Kumar and other senior