Andhra Liquor Traders Rush to Secure Retail Space Ahead of Deadline

Vijayawada: As the deadline to obtain a regular licence for liquor sales approaches on October 31, some liquor traders in Andhra Pradesh are rushing to secure suitable premises for their retail outlets in compliance with regulatory norms. The new excise policy, which began on Oct. 16 and will run for two years, allows traders selected through a draw on October 14 to set up retail outlets under provisional licences.

While some traders have established new premises for their liquor shops, others continue operations at former government retail locations. To qualify for a regular licence, however, traders must comply with location requirements that stipulate a minimum distance of 100 metres from educational and religious institutions and state or national highways. This horizontal-plane measurement has made it challenging, especially in urban areas, to identify compliant locations.

Currently, traders holding provisional licences can sell liquor, but to secure a regular licence, they must present a compliant location by October 31. Many traders are hesitant to invest in higher rents due to the limited profit margins caused by multiple state-imposed taxes. In cities like Vijayawada, rents for compliant retail spaces average Rs.1.5 lakh per month and increase further in prime areas.

Under the new excise policy, the Andhra Pradesh government has approved 3,396 private-sector retail liquor outlets. While many traders have established shops, some continue their search for compliant locations to avoid future regulatory issues.

Additionally, traders have raised concerns over the newly introduced 180 ml bottle priced at Rs 99, which complicates returning a single rupee in change when customers tender `100. However, digital payments help circumvent this issue.

A senior excise official stated, “It is true that traders without proper accommodations are actively seeking suitable locations to secure regular licences by October31 across several parts of AP.”