Andhra Pradesh CM Orders Crackdown on Illegal Liquor Outlets, Considers Haryana Model

Andhra Pradesh Chief Minister N. Chandrababu Naidu has instructed the Excise Department to investigate Haryana’s sub-lease system to combat the issue of unauthorized liquor shops, known as ‘belt shops’, in the state. The Chief Minister emphasized the need for strict action against these outlets and highlighted that the prevalence of ‘belt shops’ is due to a shortage of legal liquor vendors in rural areas.
To promote environmental conservation, the department is exploring a Deposit Return Scheme (DRS) where customers can receive refunds for returning empty liquor bottles. Chief Minister Naidu stressed that the state’s liquor policy should prioritize public health over profits, urging officials to ensure that alcohol is not treated as a mere commodity.
In a bid to enhance transparency and efficiency, the Chief Minister proposed the introduction of a unique Liquor Identification Number (LIN) for each bottle to prevent counterfeiting and irregularities. This system would include details such as brand, batch, manufacturing time, and other specifics, aiming to replace the current Hologram Excise Adhesive Labels (HEAL) system.
During a recent review meeting, officials disclosed that Andhra Pradesh’s excise revenue fell short of the target, standing at Rs 7,041 crore from October 2024 to October 2025 against the Rs 8,000 crore goal. Despite this, there has been a notable increase in liquor sales, with Indian Made Foreign Liquor (IMFL) sales rising by 19.08% and beer sales by 94.93% from April to December. The state is projected to generate Rs. 8,422 crore in revenue from December 18 to March 2026, with a three percent excise revenue growth anticipated for the fiscal year.
Furthermore, officials highlighted Andhra Pradesh’s growth in IMFL and beer sales in South India, attributing it to the introduction of international brands and the availability of quality liquor at competitive prices. However, they noted that per capita liquor consumption in Andhra Pradesh is lower than in Telangana, with figures standing at 2.77 liters and 4.74 liters, respectively.
In conclusion, Chief Minister Naidu emphasized the importance of implementing the LIN system promptly to ensure accountability and transparency in the liquor supply chain. He underscored the need for geo-tagging to monitor and optimize the distribution of liquor outlets across the state.