In a strange paradox, Andhra Pradesh has recorded an all-time high in liquor sales during 2025–26, but the actual revenue to the state exchequer from liquor sales was not up to the budgetary expectations.
While overall volume of liquor sales rose sharply with beer sales increasing by more than 70 per cent, the increase in government revenue has remained comparatively modest, highlighting the impact of lower pricing and changes in consumer preferences.
As per official data, beer sales rose by 70.29 per cent, while sales of Indian Made Liquor (IML) increased by 14.59 per cent during the period.
Although the total value of liquor sales increased by 6.11 per cent, revenue reportedly rose by only 4.01 per cent, resulting in an overall income growth of just 0.68 per cent.
Officials say this discrepancy is largely due to the state government’s policy of selling liquor at lower prices, which has boosted volumes but not translated proportionately into higher earnings.
Excise Commissioner Sridhar Cherukuri said the trend reflects a shift in drinking preferences, especially among younger consumers, with beer emerging as a more popular choice.
He also stated that price reductions in several leading liquor brands had contributed to increased sales.
According to him, the state exchequer gained around Rs 972 crore due to the pricing and demand dynamics in the liquor market, although at the same time, the reduction in prices of prominent brands also led to a substantial sacrifice in potential revenue.
He noted that a 180 ml bottle is being sold at Rs 99, while its MRP is aroundRs 442, and that such sales contributed approximately 17.64 per cent to the revenue stream.
Officials indicated that the government had reduced the MRP of leading liquor brands by an average of Rs 160 to Rs 180, which in turn led to an estimated fall of Rs 972 crore in revenue.
The data show a remarkable increase in beer consumption in particular. Beer sales reportedly rose from 136 lakh cases to 232 lakh cases, while liquor sales increased from 362 lakh cases to 414 lakh cases.
Overall, Andhra Pradesh is said to have recorded liquor sales worth approximately Rs 31,237 crore during 2025–26.
Despite the impressive numbers, excise officials acknowledge that the growth in revenue has not kept pace with the rise in sales. They attribute this primarily to the increasing share of lower-priced liquor in total sales.