Vijayawada: In a shocking turn of events for alcohol enthusiasts in Andhra Pradesh, the coalition government has approved a hike in liquor prices starting from the Sankranti festival. This decision was confirmed during a cabinet meeting held today, where the government sanctioned an increase of ₹10 per bottle, a move reminiscent of previous price hikes implemented by former Chief Minister Chandrababu Naidu.
Chandrababu Naidu, who had promised to reduce liquor prices during the election campaign, is now preparing to impose this new burden on consumers as part of wealth generation initiatives. The decision to raise prices during the festive season has raised eyebrows, especially considering that a similar increase was implemented in the past. This new initiative is expected to add a staggering ₹1,391 crores to the financial burden on the state’s liquor consumers annually.
The price hike will apply to both Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL), leading to a projected 70% increase in prices across various liquor bottles. Critics have pointed fingers at the liquor syndicate for influencing these decisions, with allegations that Naidu is aligning with these groups to boost government revenue at the expense of the public. The cabinet also decided to abolish additional retail taxes on bars, which is projected to benefit the bar syndicate by an estimated ₹340 crores each year.
This isn’t the first time that such tax reductions have occurred under Naidu’s administration; similar actions were taken during his previous tenure. However, this current coalition government has gone a step further by eliminating the Additional Retail Excise Tax (ARET), enabling even more favorable conditions for alcohol retailers. As these decisions unfold, widespread criticism has emerged regarding the government’s approach to fiscal policy and its implications for the public.
Moreover, the internal dynamics within the ruling party appear to be strained, as Chief Minister Naidu expressed dissatisfaction with his ministers’ performance during the cabinet meeting. He voiced frustration over their lack of initiative, stating that he often finds himself needing to visit the party office multiple times a month due to the mounting grievances and requests. Naidu lamented that despite his efforts to fulfill parliamentary committee obligations, the performance of district ministers remains disappointing.
This combination of increased liquor prices and internal party discontent sets a challenging backdrop for the coalition government as they navigate public opinion and economic pressures. The upcoming Sankranti festival will not only mark a celebration for many but also serve as a poignant reminder of the financial strain that these new policies will impose on the state’s liquor consumers. As the situation develops, stakeholders and citizens alike will be watching closely to see how the government addresses the mounting criticism and whether any adjustments to this controversial decision will be made.
