AP Bars Sell at Rock Bottom Rates to Beat Competition

Vijayawada/Kakinada/Anantapur: Bars in the state are selling liquor at dirt cheap rates having to stave off competition from newly-opened liquor retail outlets involving private players under the new excise policy lasting for the next two years.

Currently bars are selling liquor at rates as low as Rs 20 to Rs 50 per quarter. There are nearly 840 bars in the state which got a licence from September 1, 2022 for a period of three years.

As the state government is permitted to sell liquor in 3,396 retail outlets from October 16 onwards, a majority of the outlets have been set up, except for a few, without an area to host persons in compliance with norms.

The state government has ensured that sale of 180-ml liquor bottles will be at Rs 99. This will involve all popular brands as assured by Chief Minister Chandrababu Naidu. The excise authorities are making all efforts to get popular brands like Mcdowell's and Blenders Pride among others. Guzzlers now seem more interested in just visiting liquor shops than going to bars.

Bars sell liquor at relatively higher prices than the maximum retail price (MRP) to meet expenses like establishment cost and staff wages.

However, to retain regular customers and to attract the new ones, bar owners have started to reduce the price of liquor so that they do not face losses.

With no permission for permit rooms at liquor shops, guzzlers have to purchase liquor at the shop and have to consume it elsewhere and the bars will be of immense help to those who cannot afford to consume liquor at home.

A liquor trader said, “In order to withstand the competition from the newly opened liquor outlets, bars have started to reduce the price by `30 to `50 per quarter and it is aimed only to retain the existing customers and to attract the new customers.”

Liquor traders said that unauthorised liquor retail outlets, popularly known as belt shops, are inevitable in the liquor trade.

Sources said in Katrenikona mandal of Dr Br Ambedkar Konaseem district a liquor shop owner intends to set up belt shops in four villages while in Pedapudi mandal of Kakinada district a shop owner is getting ready to open five belt shops.

However, the local villagers reportedly resolved to demand Rs 5 lakh from the person who intended to open a belt shop and this money was meant to develop the village.

In Katrikona mandal, a liquor shop was opened near the mandal parishad development office and a permit room was also reportedly attached to it and this resulted in the villagers staging a stir.

In Anantapur, bars have started to reduce the liquor price. For instance, Kingfisher strong beer was sold at around Rs 300 against the MRP of Rs 200. Now, it is being sold at Rs 230. Traders of liquor retail outlets are reportedly asking the state government to give permission for permit rooms at the shops.