VIJAYAWADA: Chief Minister N Chandrababu Naidu has suggested that officials should not view the State’s liquor policy merely as a revenue-generating mechanism but as a system that ensures healthy and responsible growth.
Emphasising that revenue alone should not be the sole objective, the Chief Minister said liquor must be treated like any other regulated product, with a focus on transparency, quality and public interest.
Reviewing the Prohibition and Excise Department at the State Secretariat on Monday, the Chief Minister asked officials to study the existing lottery-based allotment of liquor shops, application fees, the introduction of a Liquor Identification Number (LIN) for every bottle, and the proposal to increase retailer margins.
He also instructed officials to examine the possibility of granting exemption from Additional Retail Excise Tax (ARET) for bars.
The Chief Minister stressed the need for comprehensive reforms aimed at curbing illicit liquor, controlling unauthorised ‘belt shops’, expanding digitalisation and strengthening environmental protection measures.
Use geo-tagging for transparency in liquor supply, effective tracking: CM
A detailed review was conducted on the implementation of the new excise policy and its overall impact.
Officials informed the Chief Minister that against an excise revenue target of Rs 8,000 crore for the period from October 2024 to October 2025, the State had realised Rs 7,041 crore so far. During the period from April 1 to December 17, 2025, liquor sales registered an overall growth of 4.52 per cent.
Indian Made Foreign Liquor (IMFL) sales increased by 19.08 per cent, while beer sales recorded a sharp rise of 94.93 per cent.
Officials projected that from December 18 to March, excise revenues of Rs 8,422 crore are expected, with an overall growth of 3 per cent during the current financial year.
With the introduction of international brands and the availability of quality liquor at affordable prices, Andhra Pradesh has recorded the highest growth in IMFL and beer sales in South India, officials said.
However, they pointed out that per capita liquor consumption in Andhra Pradesh remains lower than in Telangana, with AP at 2.77 litres compared to Telangana’s 4.74 litres.
Officials reported that digital payments in liquor sales have increased to 34.9 per cent, with some districts recording 40–47 per cent digital transactions. The Chief Minister urged officials to further reduce cash usage and create awareness to promote digital payments across the State.
To prevent illicit liquor and malpractices, the Chief Minister directed that a unique Liquor Identification Number (LIN) be introduced for every bottle at the earliest.
The LIN should be easily identifiable by the public and contain details such as brand, batch, and date and time of manufacture (including hours, minutes and seconds).
He said the LIN system could help address shortcomings in the existing Hologram Excise Adhesive Labels (HEAL) mechanism.
The Chief Minister also emphasised the use of geo-tagging to ensure complete transparency in liquor supply, enabling effective tracking and rationalisation of liquor shops.
Directing officials to take strict action against illegal belt shops, the Chief Minister asked them to study the Haryana sub-lease model as a possible solution to effectively curb unauthorised outlets.
Officials noted that the absence of liquor shops in certain rural and remote areas has contributed to the proliferation of belt shops.
As part of environmental protection initiatives, officials informed the CM that the government is also examining the introduction of a Deposit Return Scheme under which consumers would receive cash incentives for returning empty liquor bottles.