Andhra cabinet clears marginal liquor price hike

The Andhra Pradesh cabinet, chaired by Chief Minister N Chandrababu Naidu, has approved a marginal increase in liquor prices while simultaneously withdrawing an additional retail excise tax imposed on bars. The decision was taken at the cabinet meeting held on Thursday.

Briefing the media, State Information and Public Relations Minister K. Parthasarathy said, the maximum retail price (MRP) of all sizes of India Made Foreign Liquor (IMFL) and foreign liquor will be increased by ₹10 per bottle. However, the hike will not apply to low-priced liquor sold at ₹99 for a 180 ml bottle, nor will it affect beer, wine or ready-to-drink (RTD) beverages.

The cabinet also approved an increase in retailer margins by around 1 percent of the MRP on IMFL and foreign liquor, including 180 ml IMFL bottles, beer, wine and RTDs. Parthasarathy noted that varying billing prices for the same liquor products at bars and retail outlets had led to disparities. The withdrawal of the additional retail excise tax on bars is aimed at ensuring price parity between bars and retail shops.

The revised pricing is expected to generate around ₹1,391 crore in additional annual revenue for the state, while the removal of the extra excise tax is estimated to reduce the financial burden on bars by approximately ₹340 crore per year.

In another key decision, the cabinet approved a proposal to permit microbreweries within a 5-kilometre radius of municipal corporation limits, notified tourist centres, and 3-star and above hotels, irrespective of location.