Hyderabad: Alcohol prices are likely to go up in Andhra Pradesh. The State Government has increased the starting price for auction of liquor shops by 110 per cent. Now the dealers are demanding a higher margin.
A bottle of beer costs around Rs 55-65 in Hyderabad. But this may go up by about 15 to 20 per cent from July this year because the Andhra Pradesh Government has increased the upset price of auction of 6,596 liquor shops in the State.
This move would increase the Government's revenue by over one thousand crore rupees.
"The lease amount certainly has to be more than double than what it was last year because it will be valid for two years," says Excise Commissioner, B R Meena.
To get license for a liquor shop in Hyderabad or Visakhapatnam, a retailer will have to pay over 18 lakh rupees.
The traders argue that they will not be able to recover their investments if their margins are not increased.
However, the Government says the prices would remain unaffected.
"A retailer cannot increase the prices because they are fixed by the Beverages Corporation on the basis of procurement prices, calculating the retailers' margins and arriving at MRP at which he is supposed to sell to the customers," says Meena.
The liquor traders say a price hike is inevitable and they would force the Beverages Corporation to do so.
But the final decision would be taken only after the completion of auction process in the first week of June.
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