New Excise Policy to be rolled out on Sept. 1, bar licences to be given thru lottery

Andhra Pradesh will launch New Excise Policy on September 1 by allotting bar licences through lottery and focusing reduction in health risks by creating awareness.

During a review meeting, Chief Minister N. Chandrababu Naidu said "we must remember that excise policy is not solely about income, it must prioritise public safety and emphasised that by promoting liquor with lower alcohol content, the health risks to consumers can be significantly reduced.

At present, there are 840 bars operating in the State. Under the new policy, bar licenses will be allotted through a lottery system. The cabinet sub-committee has proposed the following annual licence fees based on population: ₹35 lakh for areas with population below 50,000, ₹55 lakh for areas with population up to five lakh, and ₹75 lakh for areas with population above five lakh.

Officials estimate a revenue of ₹700 crore from application and license fees under the new policy. A condition will be imposed requiring a minimum of four applications per bar licence. The Chief Minister also directed that 10% of bar licences be allocated to Backward Classes (BC) communities, similar to the existing reservation in liquor retail outlets.

The Chief Minister urged everyone not to view the excise policy merely as a source of revenue, but to also consider its profound impact on people’s well-being. He recalled that during the previous government’s tenure, poor-quality liquor led to the devastation of lakhs of families. It is essential to ensure that liquor does not ruin the homes and lives of the poor, he reiterated.

After consultation with Ministers Kollu Ravindra and Kondapalli Srinivas, along with senior officials, he said the policy has been drafted based on the recommendations of the cabinet sub-committee.

Officials also explained to the Chief Minister the reasons behind increased liquor sales near state borders. They pointed out that reduced prices, availability of all brands, and access to quality liquor in Andhra Pradesh have led to consumers preferring to purchase liquor within the state. As a result, sales in AP’s border areas have increased, while sales in neighboring states have declined.