The consumption of alcohol in Andhra Pradesh has come down significantly in the last three years due to periodic price increase by the State Government.

As per the official data, the alcohol consumption has dropped from 384.31 lakh cases in 2018-19 to 278.5 lakh cases in 2021-22 and that of beer from 277.10 lakh cases to 82.6 lakh cases. 

Revenue up

However, there has been no adverse impact to the state’s exchequer as the revenue has risen from ₹20,128 crore in 2018-19 to ₹25,023 crore in 2021-22 due to steep hike in prices, as per the latest data available with the Excise department.

With the stepped up vigil on illicit liquor in the last three years, about 20,127 cases were registered with 16,027 arrest.

The cash-strapped state government had issued new bar licences last month with validity till August 2025, and had mopped up higher revenue compared to the previous years. On auctioning of 838 new bar licences with three-year validity, the State Excise department has issued 815 licences across the State for ₹597 crore.

As per the government data, the State Government had earned an additional income of ₹308 crore in the current round of auctions compared with the previous year’s ₹289 crore (2021-22), while it was at ₹262 crore in 2020-21. 

The issue of alcohol has political ramifications as the prohibition was one of the poll promises of the ruling YSRCP Government. In its election manifesto, the party promised  complete phase-out of liquor sales in the State, except in star hotels.

However, due to resource crunch, the government has done away with its plan of phased prohibition and issued bar-licences for three years even though the assembly elections are slated for May 2024. 

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