Andhra Pradesh allows liquor shop operators to renew licences instead of fresh auction bidding

The Andhra Pradesh government has extended its existing retail liquor shop network for another year, allowing current licensees to renew their permits instead of conducting a fresh auction for the 2026-27 excise cycle.

Principal Secretary for Excise, Mines and Geology Mukesh Kumar Meena issued the notification for the Excise Shops Policy 2026-27, which will govern 3,736 retail liquor outlets statewide from October 1, 2026, through September 30, 2027. The decision follows a review of excise policies implemented between 2019 and 2024, recommendations from a Group of Ministers, and the experience gained from the current 2024-26 policy that expires at the end of this month.

Licence Renewal Framework and Fee Structure

Under the new policy, existing shop operators choosing to continue must pay a Renewal Retail Excise Tax (RET) amounting to 38% of their annual RET, in addition to the standard annual RET and any applicable permit-room RET. Annual RET rates will remain at 2025-26 levels.

For the 3,396 open-category shops, the renewal RET varies by population density: ₹23 lakh in areas with populations up to 50,000, ₹27.2 lakh where populations range between 50,000 and 5 lakh, and ₹35.5 lakh in areas exceeding 5 lakh residents. The renewal RET must be paid in a single lump sum alongside the first annual RET instalment.

The remaining 340 shops are reserved for Geetha Kulalu, the toddy-tapping community, with renewal RET set at ₹11.5 lakh, ₹13.6 lakh and ₹17.8 lakh across the same population brackets. Permit-room licences remain mandatory wherever applicable, and licensees opting for instalment payments must furnish a bank guarantee equivalent to one three-month instalment. Current operators seeking renewal must also pay a ₹35,000 processing fee.

Fresh Allotment for Non-Renewed Outlets

Shops that existing licensees choose not to renew will be allotted through a draw of lots, requiring applicants to pay a non-refundable ₹1,000 application fee. At least four applications are necessary for the lottery process, and newly allotted shops will not be subject to the renewal RET.

Digital Monitoring and Surveillance Measures

The policy introduces enhanced digital oversight through an end-to-end Track and Trace system spanning production to retail sale, alongside digital stock and sales records and e-inventory monitoring.

Each outlet must install four CCTV cameras covering the sales counter, stock area, consumer area and permit-room area where applicable. The surveillance network will connect to an AI-enabled Command and Control Centre. Deliberate tampering or disruption of these systems will incur penalties, with repeated violations potentially resulting in licence cancellation.

Compliance Requirements and Penalties

Licensees must adhere strictly to maximum retail prices and avoid unauthorised sales, spurious liquor, brand mixing and dilution. Unauthorised sale will attract a penalty of ₹25 lakh for the first offence, while a second violation may lead to licence cancellation.

Source: The Hindu