The Andhra Pradesh government on Thursday reduced prices of liquor by Rs 10 to Rs 280 in two
categories apart from beer, to bring parity in rates with neighbouring states like Telangana and Karnataka to check smuggling.

Also, the rate reduction is aimed at preventing habitual tipplers from reportedly consuming hand sanitisers that in recent days caused many deaths in the state.

However, the government enhanced the price of “premium and super premium” liquor to “rationalize” the rates so that the overall hike remains at 75 per cent, as effected in October last year and again in May this year, citing the overall revenue loss caused by coronavirus pandemic.

But, the government did not suffer any loss in revenue from Excise despite the dip in volumes because of the liquor price hike.

“The percentage of liquor smuggled into AP from other states increased by 2012 between May 16 and July 31 and that of beer by 1,251 per cent. As many as 10,977 cases were booked and 14,478 people were arrested for smuggling liquor from other states,” Revenue (Commercial Taxes and Excise) Special Chief Secretary Rajat Bhargava said.

The Special Enforcement Bureau, constituted by the state government to curb liquor smuggling from other states, reported that the prices of liquor (some categories) was lesser in states like Telangana and Karnataka.

In some categories, price in AP was much higher than in Karnataka while a similar situation prevailed in respect of Tamil Nadu also, the SEB pointed out.

This has led to large-scale smuggling of low-priced liquor from neighbouring states, causing a dent in revenues to the cash-starved AP government.

Besides, the high price of liquor also forced habitual tipplers to consume hand sanitisers as a substitute.

This led to the death of 16 people in Prakasam district, five in Visakhapatnam, three in Chittoor and two in Kadapa in recent days.

The Special Chief Secretary, however, pointed out that the measures taken by the state government, including steep hike in prices, led to a drastic fall in liquor consumption in
the state in recent months.

“Consumption of Indian Made Foreign Liquor fell by 40 per cent and beer by 60 per cent due to hike in prices,” Rajat Bhargava told PTI.

The main aim of the current price rationalization was to curb inter-state liquor smuggling and prevent loss of revenue to the government, he said.