Vijayawada: In a bid to strengthen revenue generation and modernize excise administration, the Andhra Pradesh government is planning major reforms in its liquor policy. The proposed changes include revising pricing structures, overhauling the retail framework, and offering incentives to breweries to increase production. A cabinet sub-committee, led by Excise Minister Kollu Ravindra, has been tasked with studying these reforms.
Key Reform Proposals
The cabinet sub-committee on excise reforms has focused on restructuring licence fee slabs and redistributing liquor outlets without increasing the total number of shops. The committee has directed officials to explore technology-driven systems in retail operations. The sub-committee includes MSME Minister Kondapalli Srinivas, Health Minister Satya Kumar, and Energy Minister Gottipati Ravikumar.
Price Revision and Revenue Impact
The ministers reviewed proposals to revise beer and liquor prices in light of rising input costs, inflationary pressures, and the impact of global conflicts on raw materials, transportation, and packaging. Principal Secretary MK Meena explained the consequences of liquor price increases on state revenues, retailers, and consumers. While a price hike is expected to boost state revenues and help manufacturers absorb rising material costs due to the West Asia conflict, it may also affect sales volumes to some extent.
Retail Policy and Technology Integration
Excise Commissioner Chamuri Sridhar presented detailed analyses of the existing excise retail policy and outlined a future roadmap for reforms. Discussions covered retail sales growth, revenue trends, and measures to strengthen compliance and administrative efficiency across districts. The committee also studied proposals to introduce digital payment infrastructure in liquor retailing and dynamic printing of maximum retail prices.
Brewery Incentives and Supply Stability
The sub-committee examined proposals to enhance beer supply capacity through industrial incentives for breweries, export facilitation measures, and short-term interventions during peak demand seasons. Plans to encourage investment in brewery infrastructure and ensure long-term supply stability were also reviewed.
New Licensing Framework
Among other reforms, the committee studied a proposal for a separate licensing framework for high-purity alcohol and laboratory-grade spirit manufacturing. Principal Secretary MK Meena stated, "The proposed policy measures are intended to improve transparency, boost revenue mobilization, modernize excise administration, and attract investments into allied manufacturing sectors in the state."
The cabinet committee also directed officials to study the possibility of granting new outlets at airports. These reforms aim to modernize the excise sector while balancing revenue generation and consumer interests.
