Andhra Pradesh to use computer-based model to get more liquor from highest selling brands

Amaravati: Implementing a market-driven model dictated by demand and supply dynamics, the Andhra Pradesh Prohibition and Excise Department will employ a computer-based model to procure more liquor from the highest selling brands, said an official.

The official noted that the brand which sells the most will be procured more but noted that every registered liquor brand will be given an opportunity to sell its wares.

After scrapping the old liquor policy, the N Chandrababu Naidu-led NDA government is implementing a brand new liquor policy from today.

"We will have a computer-based model in which on the basis of demand whichever (liquor brand) sells more it will be procured more. So, it is a market-driven thing (mechanism)…but the procurement will be on a demand and supply basis as per market dynamics," the official told PTI.

Further elaborating the model, the official noted that initially liquor brands will be allowed to supply 10,000 cases in the market to be followed by the market-driven model which will kick in the market dynamics cycle.

Moreover, the official noted that based on liquor sales over the past three months, brands will be allowed to sell 150 per cent of that quantum.

According to the official, all liquor brands, domestic and international, have already started coming into the state as the new liquor policy has come into force.

Unavailability of popular liquor brands and exorbitant cost were major allegations against the erstwhile YSRCP government as tipplers complained of being deprived of choice and quality.

Earlier, Excise Minister K Ravindra observed that consumers were deprived of the luxury of choosing the brands they liked, compelling buyers to purchase only available liquor brands between 2019 and 2024.

He had highlighted that the government is giving importance to make quality brands available in the state and officials also toured several states across the country to study the best practices in liquor retail sales, procurement, quality control and pricing mechanism.

In the run-up to the 2024 assembly elections, current Andhra Pradesh Chief Minister Chandrababu Naidu, who was then an opposition leader, accused the previous YSRCP government of high liquor prices and poor quality.

Under the new NDA government liquor policy, consumers can buy a 180 ml bottle liquor as low as Rs 99 also.

"From now on, quality liquor will be available in all liquor shops across the state. Premium brands will be available in all liquor shops," said an official statement on Tuesday.

Unlike under YS Jagan Mohan Reddy-led YSRCP government, which allowed cash only mode of liquor sales, this time all liquor shops across the state will mandatorily facilitate digital payments.

According to an official statement, digital payments at liquor shops rose by nine per cent monthly from June, following the swearing in of the new NDA alliance government of TDP, BJP and Janasena.

The southern state raked in an application fee of Rs 1,800 crore from nearly 90,000 applicants for liquor shops and successfully allocated licenses to 3,396 shops on October 14 through a draw of lots.

Interestingly, Andhra Pradesh received applications from abroad and within the country as it did not restrict applications on the basis of region. It allowed all citizens of India above 21 to apply by paying a non-refundable fee of Rs 2 lakh.

Excise revenue is a major source of income for Andhra Pradesh which it hopes to fund the government.

Cash-strapped Andhra Pradesh expects to earn about Rs 20,000 crore through the sale of licensing fees and liquor in the remaining months of fiscal 2024-25.

While releasing a white paper on former YSRCP government’s excise policies during the second meeting of the first assembly session in July, Naidu had alleged that the state had suffered a loss of Rs 18,860 crore between 2019 and 2024 under YS Jagan Mohan Reddy.

Further, he alleged that Andhra Pradesh had incurred a liquor income gap of Rs 42,762 crore in the past five years (YSRCP government) when compared to neighbouring Telangana.

Meanwhile, opposition leader Jagan Mohan Reddy, who promised to achieve complete prohibition during his regime and failed, alleged that Naidu is turning the state into a hub of liquor mafias and private syndicates.

Criticising the new policy, Reddy vowed that he would lead a people’s movement against these policies if they are ‘not corrected’.