Andhra cabinet approves marginal hike in liquor prices

The Andhra Pradesh cabinet, chaired by chief minister N Chandrababu Naidu, on Thursday decided to increase the maximum retail price of all sizes of India-Made Foreign Liquor (IMFL) brands and foreign liquor by ₹10 per bottle, while withdrawing additional retail excise tax imposed on bars.

Briefing reporters after the cabinet meeting, state information and public relations minister K Parthasarathy said the increase of ₹10 per bottle will not be applicable to cheaper liquor (180 ml bottle costing ₹99), beer, wine and ready-to-drink (RTD) varieties.

The cabinet also decided to increase the retailer margin by approximately 1% of MRP on IMFL and FL, including 180 ml IMFL bottles, beer, wine and RTDs. “The cabinet noted that different billing prices for the same liquor products in bars and retail shops has created disparities. The withdrawal of additional retail excise tax on bars aims to ensure price parity between bars and shops,” the minister said.

The price hike is expected to generate approximately ₹1,391 crore in additional annual revenue for the state. At the same time, the withdrawal of additional retail excise tax will reduce the financial burden on bars by about ₹340 crore per year, he said.

The cabinet also approved the proposal to permit microbreweries in the areas within 5 kilometres around municipal corporation limits, notified tourist centres and 3-star and above hotels, irrespective of location.

“This is in addition to existing permissions within municipal corporation limits as per current rules, thereby expanding the scope for hospitality and tourism-driven investments,” Parthasarathy said.

The cabinet approved the proposal to establish the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) as an integrated logistics infrastructure holding company. In a major move to mobilise institutional capital for logistics and industrial infrastructure, the government also cleared the formation of the Andhra Pradesh Logistics Fund as an Alternative Investment Fund (AIF).

“The state government will act as the anchor sponsor, contributing 10–20% of the total corpus. A professional Asset Management Company (AMC) and a Trustee will be appointed to ensure efficient management and governance,” he said.