VIJAYAWADA: Andhra Pradesh’s liquor revenue gap with Telangana surged from Rs 4,186.70 crore to Rs 42,762.15 crore over five years due to the previous YSRCP regime’s policy failure, the State government claimed on Saturday.
According to a note tabled in the Andhra Pradesh Legislative Council on “Scams during 2019-24,” reduced legal liquor availability reportedly increased the prevalence of illicit liquor, resulting in significant losses to the State Exchequer.
The report stated that the previous government made misleading promises about liquor prohibition but failed to implement effective measures. After promising to phase out liquor outlets and restrict sales to five-star hotels, the government reduced the number of liquor shops from 4,380 to 2,934 in 2020.
However, the count later increased to 3,392 with the addition of 459 Andhra Pradesh Tourism Development Corporation (APTDC) shops.
Regarding bars, the report noted that all 840 bars operating in 2019 remained functional. The previous government’s prohibition pledge allegedly resulted in personal profiteering, increased crime, black market activities, and public health concerns due to inadequate liquor regulation.
The report highlighted that maximum retail price (MRP) hikes of up to 75%, intended to reduce alcohol consumption, had backfired.
The policy missteps reportedly led to a 66% increase in non-duty paid liquor, a 64% rise in crime, a 161% surge in arrests, and worsening public health conditions. “New players seised production through intimidation, while multinational corporations (MNCs) faced delayed payments and order cancellations. Transparent procurement (2014-19) was replaced by discretionary methods that benefited select players. Supply chains were monopolized to favour certain brands, excluding MNCs,” the report stated.
The report further revealed that affordable liquor options had dwindled from 31 brands before 2019 to just two, resulting in a 99.97% drop in legal sales and an increase in illicit consumption. Between 2019 and 2024, 60% of the State’s 20 IMFL (Indian-Made Foreign Liquor) distilleries reportedly shifted to subleases.
New entrants — including Adan, Graysons, Leela, JR Associates, and PV Spirits — operated at 2,000 lakh proof litres, generating Rs 20,356 crore in sales.
Automated procurement systems were abandoned in favour of manual selection, benefiting 38 new brands from seven firms, which reportedly earned Rs 15,843 crore.
The report also claimed that liquor and beer supply orders were linked to extortion, with an estimated Rs 3,113 crore collected illicitly over five years. Additionally, 99.38% of the Andhra Pradesh State Beverages Corporation Limited’s (APSBCL) Rs 99,413.5 crore liquor sales were conducted in cash, leaving no digital trail of transactions.
The report highlighted that Rs 13,148.82 crore was raised through high-interest non-convertible debentures.