Amravati: The Andhra Pradesh government has introduced a new liquor policy, effective from October 12, 2024, allowing private retailers to sell alcohol, mirroring the approach seen in states like Haryana, media reports said.

The policy is expected to generate Rs 5,500 crore in revenue for the state.

In a significant shift from the existing excise framework, the government has announced the privatization of liquor retail with 3,736 outlets notified across the state.

The new policy aims to reverse the decline in sales experienced over the past five years and position Andhra Pradesh as one of India's top three liquor markets, according to industry sources and analysts.

The policy will offer affordable liquor options priced at Rs 99 or lower, aiming to curb the demand for illicit alcohol.

National suppliers are encouraged to introduce brands at this price point.

The policy will have a tenure of two years, providing regulatory stability and predictability, which is expected to attract greater participation from retailers.

Licenses will be allocated through an online lottery system, with fees ranging between Rs 50 lakh and Rs 85 lakh across four categories.

Retailers will be allowed to earn a 20% profit margin on sales, and 12 premium shops will be granted five-year licenses at a fee of Rs 1 crore each.

India's beer industry body anticipates renewed investments in the state, with breweries costing between Rs 300 crore and Rs 500 crore, signaling potential growth in Andhra Pradesh's liquor market after years of stagnation.