AP Liquor Traders Upset Over ‘Less Margin’ Against Assured 20%

 Vijayawada: The liquor trade in AP has raised its concern over the “less than 10% margin” they get on issue price against the assured 20 per cent, as liquor sales began in the private sector on Wednesday.

This was the first day of sales for the licence period 2024-26, under the new liquor policy of the alliance government.

The traders quoting GO 213 said the retailer’s margin of profit has come down to less than 10 per cent as the government started imposing additional retail excise tax, a drug control/rehabilitation cess of 2 per cent etc.

“This way, the liquor business here will not be viable and may cause us a loss especially in municipalities and municipal corporations, with an exception for Tadikonda assembly segment in Guntur district,” they said.

President of the AP wine dealers’ association, Rayala Subba Rao, said, “We urge the state government to ensure a 20 per cent trade margin on issue price, as was initially promised. May be, there was some clerical error.”

Meanwhile, the traders who got allotment of the liquor shop through a draw of lot on Oct 14, have been issued a provisional licence. Some of them, who set up a shop immediately, started getting stocks from the liquor depots and began the sales.

There are others who are continuing in the old shop on a temporary basis until they find a new building for operations.

Once a trader find a suitable place to run the liquor retail outlet in compliance with all norms, the excise authorities will issue him a permanent licence.

On the first day of sale, both traders and guzzlers faced teething problems. Guzzlers rushed to the old shop as usual and found it locked or vacated. Only then did they realise that the new liquor policy has come into force. Some traders continued in the old shop unable to find new shops.

Some guzzlers complained about non-availability of 180ml liquor at Rs 99 price as was promised by chief minister Chandrababu Naidu. It continued being sold at the old rate of Rs 120.

Meanwhile, the excise authorities started generating IDs for the new licence holders, to place an indent online and collect the liquor from the liquor depot.

They lifted all old stocks from the government retail outlets after the expiry of the licence period and started releasing fresh stocks of liquor -- some liquor at old rate and some at new rate. Brands like McDowell and Blender’s Pride appeared in some new shops.

The state government has given permission to set up 3,396 liquor retail outlets. It received 89,882 applications. The non-refundable licence fee fetched Rs 1,798 crore for 2024-26.