Price drop fails to push liquor sales up in Andhra Pradesh

VIJAYAWADA: Even as the state government reduced the prices of premium brands of liquor, there has been little increase in the sale volume. Officials informed that there was a slight increase in sale value with those habituated to consume cheap liquor opting for premium brands after the prices were reduced.

Speaking to The New Indian Express, AP Beverages Corporation Limited (APBCL) managing director D Vasudeva Reddy said that there was no increase in sale volume even after slashing the prices of premium brands, but the sale value was increased by nearly Rs 1 crore per day.

“The sale value, which stood at around Rs 53 crore a day before the prices of middle and premium brands were reduced, has increased by another Rs 1 crore. But, there has been no increase in sale volume,” he said and reasoned that some of those consuming cheap liquor for some time, because of the high prices of premium brands, might have shifted to their old brands after the prices of premium brands were reduced by Rs 100 for a quarter bottle (180 ml). 

After increasing the prices of all kinds of liquor by 75 per cent after reopening the liquor outlets following relaxation of the COVID-induced lockdown, the government cut the prices of cheap liquor and beer to some extent in the first week of September following the flow of non-duty paid liquor from the neighbouring states. Beisdes, some tippers have lost their lives after consuming sanitisers. 

At the same time, the prices of premium brands were hiked once again, much to the dismay of the tipplers. 

The officials have initially thought that reduction in prices of cheap liquor will curb the menace of liquor smuggling from the neighbouring states as around 80 per cent of tipplers consume cheap liquor. However, there was no sharp decline in liquor smuggling and the government recently reduced the prices of premium brand liquor also. 

When contacted, AP Madhya Vimochana Prachara Committee Chairman V Lakshman Reddy said that the number of cases registered by Special Enforcement Bureau against illegal transportation of liquor have been reduced after the government slashed the prices of liquor.

Sale value

Rs 53 crore a day before the prices of middle and premium brands were reduced
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Rs 54 crore after prices were reduced

Liquor prices

Government increased liquor prices by 75 per cent after reopening the outlets after relaxation of the COVID-induced lockdown

Govt cut the prices of cheap liquor and beer to some extent in September first week following the flow of non duty paid liquor from the neighbouring states. It also hiked prices of premium brands

Smuggling of liquor continued unabated and the govt recently slashed the prices of premium brands also