Andhra Pradesh Cabinet Approves Marginal Liquor Price Hike

The Andhra Pradesh cabinet, chaired by Chief Minister N. Chandrababu Naidu, on Thursday approved a Rs 10 increase in the maximum retail price of all sizes of India-Made Foreign Liquor (IMFL) and foreign liquor bottles, while withdrawing the additional retail excise tax imposed on bars, as reported by NDTV.

Briefing reporters after the meeting, State Information and Public Relations Minister K Parthasarathy clarified that the Rs 10 hike will not apply to cheaper liquor (180 ml bottles priced at Rs 99), beer, wine, and ready-to-drink (RTD) varieties.

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

The price hike is expected to generate approximately Rs 1,391 crore in additional annual revenue for the state, while the removal of the additional retail excise tax will reduce the financial burden on bars by about Rs 340 crore per year, he added.

The cabinet also approved a proposal to permit microbreweries within 5 km of municipal corporation limits, in notified tourist centers, and in 3-star and above hotels, regardless of location. “This expands existing permissions within municipal corporation limits and aims to boost hospitality and tourism-driven investments,” Parthasarathy said.

In addition, the cabinet cleared the establishment of the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) as an integrated logistics infrastructure holding company. To mobilise institutional capital for logistics and industrial infrastructure, the government also approved the formation of the Andhra Pradesh Logistics Fund as an Alternative Investment Fund (AIF). “The state 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.