The Andhra Pradesh government has revised the liquor rates in the state, reducing the rates of low-price liquor, following a major increase in liquor smuggling into the state from neighbouring states like Karnataka and Telangana. Since the latest hike in liquor prices in May, the Special Enforcement Bureau has reportedly found that the number of liquor smuggling cases booked on a monthly average went up by 321%, with 10,977 cases booked between May 16 and July 31.
In order to prevent smuggling, as well as incidents of sanitiser consumption as an alternative to alcohol leading to several deaths, the Revenue (Excise) Department has modified liquor prices per bottle on Indian Made Foreign Liquor (IMFL), Foreign Liquor (FL), beer, wine and Ready to Drink (RTD) varieties supplied by wholesale IMFL depots to retail licensees of shops, bars, etc.
The price changes were brought into effect from Thursday, by reducing the prices of low-price categories while increasing the rates for “premium and super premium categories”, keeping an overall increase of MRPs (Maximum Retail Price) at 75% on the MRPs in effect as on May 3. On May 5, the state government decided to levy a 75% prohibition tax on liquor, with liquor stores witnessing huge crowds when they opened for the first time in 40 days, due to the lockdown.
On a 180 ml bottle of liquor that would cost Rs 120 as on May 3, Rs 30 has been slashed from its price. For 180 ml liquor that cost Rs 120 to 150 earlier, the price drop now is Rs 70. However, for more expensive liquor that cost around Rs 600 as on May 3 (before the 75% additional tax), the price has now increased by Rs 230, for a 180 ml bottle.
The government has taken various steps in line with its policy to reduce liquor consumption, including removal of belt shops and reduction in the number of liquor retail shops, followed by the hike in liquor rates. According to the Special Enforcement Bureau’s (SEB) report on the impact of increased liquor prices, the monthly average of number of persons arrested for liquor smuggling has gone up by 466% since May 15, and the quantity of liquor being smuggled into the state went up by 2012%. The amount of beer being smuggled in also went up, by 1251%. The monthly average of vehicles being seized went up from 629 to 4004, as per the SEB report.