Under the current policy, no liquor outlet can be within a 100-meter radius of schools, religious institutions, hospitals, or highways. Unlike in previous years, the excise authorities now measure this distance in a straight line or “air distance,” rather than following road paths, adding a new layer of complexity. Many traders argue that this policy, which is unique to Andhra Pradesh, is creating operational difficulties and has left them scrambling to find compliant locations.

Apart from meeting distance requirements, liquor traders are facing local resistance. Many communities express concerns over the potential impact of nearby liquor shops on public peace and safety, fearing an increase in law and order issues. Traders report that they are frequently confronted by residents who oppose the establishment of liquor outlets in close proximity to their homes, even when these shops meet state guidelines. Political pressures and disputes over rental advances with property owners further complicate the process, with some traders struggling to relocate after already securing locations.

Despite these hurdles, excise authorities report that over 2,500 of the sanctioned outlets have successfully received regular licenses, leaving only a small number of traders working against the clock. For many, the November 10 deadline marks a critical turning point as they seek to overcome regulatory and community challenges to secure their businesses. As the liquor policy evolves, the balance between regulation, community interests, and business feasibility remains a crucial issue in Andhra Pradesh’s retail liquor landscape.

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The AP Wine Dealers’ Association, led by President Rayala Subba Rao, is urging the state government to address these issues and reinstate the promised margin. “We urge the state government to ensure a 20% trade margin on issue price, as was initially promised. Maybe, there was some clerical error,” said Rao, highlighting that the current margin is unsustainable for businesses, especially in urban areas and municipalities, with Tadikonda Assembly segment in Guntur district being an exception.

Wednesday marked the first day of liquor sales for the new 2024-26 license period. Following a lottery-based selection process on October 14, provisional licenses were issued to traders who quickly set up shops and began receiving stock from liquor depots. While some traders have managed to secure new locations, others are temporarily operating from their previous locations until they can comply with all regulatory requirements. Permanent licenses will be issued once the traders secure suitable premises that meet government standards.

However, both traders and consumers faced difficulties on the first day. Many customers, unaware of the changes, returned to their regular shops only to find them closed or relocated due to the new policy. In some areas, consumers were also disappointed by the unavailability of 180ml bottles priced at ₹299 as promised by Chief Minister N. Chandrababu Naidu, finding that they continued to be sold at the old price of ₹120.

The government has allocated 3,396 retail outlets across the state, with an overwhelming response of 89,882 applications received for licenses. The licensing fees have generated a significant revenue of ₹1,798 crore for the 2024-26 period, a testament to the high demand for liquor trade licenses in the state.

To streamline the process, excise authorities are currently generating IDs for new license holders, enabling them to place orders online and collect stocks from designated depots. In a bid to refresh the market, authorities have also lifted old stocks from government-run outlets and started distributing fresh stocks to new retailers, with popular brands like McDowell’s and Blender’s Pride already making an appearance in some shops.

While the policy shift aims to regulate the liquor trade, traders are concerned that the lack of clarity on profit margins and increased tax burden could impact the sustainability of their businesses. As the state transitions into this new system, both the government and traders are hopeful that the initial challenges will be addressed, paving the way for smoother operations in the coming months.

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The current excise policy, resembling that of the previous Telugu Desam term, permits individuals to apply for shops, which will then be distributed via a lottery overseen by district-level official committees. Despite the open application process, many areas in Rayalaseema are expected to witness political influence in shop allotments.

“Should there be competition from rival leaders, we will submit additional applications to secure more shops in the lottery system without compromising the syndicate,” stated a senior leader from Satya Sai district to Deccan Chronicle. Another veteran TD leader in the liquor industry shared his experience of having to shut down a bar obtained through tenders due to political pressures under the YSRC government. Presently, Telugu Desam leaders are actively seeking a significant share of shops in prime locations.

The existing licenses for bars and restaurants are valid for another year, with many being operated by non-local individuals. As per sources, customers will not have the option to consume alcohol at the shops under the new policy. However, the updated policy includes a provision for a permit room in each shop where patrons can enter and consume alcohol.

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