The new bar policy introduced by the Telugu Desam Party-led coalition government in Andhra Pradesh, headed by Chief Minister N Chandrababu Naidu, has failed to generate enthusiasm among liquor traders.
In the past, traders would compete fiercely for licenses to run wine shops and bars. This time, however, many are reluctant to participate in bar tenders, openly stating they are not interested.
Due to the lack of applications, authorities were able to allocate only about half of the available bars through lottery, while issuing fresh notifications for the remaining ones.
Despite this, there has been no significant improvement in the response, leaving excise officials struggling to attract applicants and sparking a wider debate on the state of the liquor business.
Even after the deadline was extended in the first phase, only half the bars received applications. A second notification brought little change, with traders continuing to stay away. The primary reasons cited include stringent conditions under the new policy.
Key deterrents are the requirement of a minimum of four applications per bar, as well as the continuation of the Additional Retail Excise Tax (ARET) at 15% over the issue price, introduced by the previous government.
Traditionally, liquor is supplied to retail shops at issue price, after deducting the margin allowed to licensees. With ARET still in force, traders argue that the business has become financially unviable.
They further claim that allowing “permit rooms” in retail liquor shops has adversely impacted the bar trade, drawing customers away from licensed bars.
As a result, excise officials are facing a difficult task of ensuring applications are submitted within the stipulated time and are making every possible effort to address the growing disinterest among traders.