Excise reset uncorks demand and investment in Andhra’s liquor mkt

Andhra Pradesh’s new excise policy is reigniting the alcohol market as companies rebuild supply chains, restore demand, and draw national attention.

- ANEEKA CHATTERJEE

Effective from October 2024 to September 2026, it reopens a long-restricted industry, triggering volume recovery, renewed interest from national players, and a shift towards premium products, say industry leaders.

For years, Andhra's tightly controlled alcoholic beverage (alcobev) market — marked by limited brand availability, centralised retail, and state led supply allocations — curbed demand and business sentiment. Experts say the new government's overhaul of excise rules and retail privatisation has reset the landscape.

The policy pivots sharply towards private retail, licensing 3,736 liquor outlets — 3,396 in the open category and 340 reserved for the toddy-tapping community — through a two-year lottery system. It introduces ₹99 price points for select 180 ml bottles and premium urban stores, mandates UPI payments to curb illegal cash transactions, fixes a 20 percent retail margin, standardises operating hours, and positions the reforms around public safety, transparency, and community inclusion.