3 weeks ago
AP Traders Seek 20% Margin Ahead of New Excise Policy
A state in India called Andhra Pradesh is getting new rules for shops that sell alcohol, starting October 1.
The old rules end on September 30 after being used for two years.
People who run these shops say they are not making enough money.
They are asking for a bigger profit share of 20 per cent on what they pay for the liquor.
The government says shop owners already get a 17.5 per cent share, which is higher than what the owners claim.
Some shop owners say many shops lose money, and a few even add 10 rupees extra to the price to try to cover their losses.
They also want shops to be spread out fairly so no town has too many shops in one area.
The shop owners complain that shops reserved for backward communities are secretly being run by people from other groups.
The government is collecting ideas from the shop owners before writing the final new rules.
Andhra Pradesh's new excise shop policy takes effect October 1, replacing a two-year policy that expires September 30.
Liquor traders have demanded a 20 per cent trade margin on issue price, calling the current margin insufficient.
Traders claim roughly 40 per cent of about 3,490 retail shops are incurring losses, while one trader puts the figure near 70 per cent.
Traders seek rationalisation of outlets by population criteria and allege BC 'Geetha Kulalu' shops are held by upper castes in benami names.
Excise authorities say traders already get a 17.5 per cent margin, a higher figure than the roughly 13.5 per cent traders cite.
- Who
- Liquor traders, the AP wine dealers association, and Andhra Pradesh's excise department
- What
- Traders demand a 20 per cent trade margin, licence renewal, and shop rationalisation under the state's new excise policy
- Where
- Andhra Pradesh, India
- When
- New policy takes effect October 1; the current policy expires September 30
- Why
- Traders say current margins are too low and many shops are incurring losses
Liquor Traders
Excise Department
Trade margin
Liquor Traders
Traders say the current margin of about 13.5 per cent is insufficient and want 20 per cent on issue price to keep their business viable.
Excise Department
Excise authorities say traders already receive a 17.5 per cent margin on purchase of liquor.
Extent of losses
Liquor Traders
Traders claim around 40 per cent of the ~3,490 shops incur losses, with one trader estimating nearly 70 per cent lose money; some add Rs 10 to the MRP to offset losses.
Excise Department
Excise authorities state traders get a 17.5 per cent margin, contradicting the traders' loss claims based on a 13.5 per cent margin.
Key facts
- New policy effective
- October 1
- Existing policy expires
- September 30
- Trade margin demanded by traders
- 20%
- Current margin cited by traders
- ~13.5%
- Current margin cited by excise authorities
- 17.5%
- Liquor retail shops
- ~3,490
- Shops incurring losses (traders' claim)
- ~40% (one trader says ~70%)
- BC 'Geetha Kulalu' quota
- 10% of outlets with 50% licence fee discount
Quotes
K Nageswara Rao
Liquor trader and shop owner
“Nearly 70 per cent of the liquor traders are incurring loss in their business and they are hopeful of a policy that will help them overcome the revenue loss.”
deccanchronicle.com
“We have sought a 20 per cent trade margin on liquor sale, renewal of licence and rationalisation of shops.”
deccanchronicle.com
Sources
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