Liquor merchants from Telangana are increasingly eyeing business opportunities in Andhra Pradesh’s West Godavari district, particularly in towns like Bhimavaram, Tadepalligudem, Tanuku, and Eluru. However, while some have already moved into the region, there appears to be hesitation among Telangana traders due to concerns about profitability and potential government restrictions.
The Telangana traders are reportedly concerned that the liquor market in this area may not offer as much business as they had hoped, especially compared to the lucrative twin cities of Hyderabad and Secunderabad.
Adding to their concerns, the Andhra Pradesh government has issued warnings about strict enforcement of liquor pricing laws. If merchants sell liquor above the Maximum Retail Price (MRP), there are threats of license cancellations, which has made some traders cautious about investing too heavily in this market.
Despite these concerns, both TDP and YSRCP leaders, who previously controlled a significant portion of the liquor business in the area, are forming syndicates in collaboration with some Telangana traders. These syndicates are organizing to submit 20 to 25 applications for each liquor shop, demonstrating the high level of competition and interest in securing licenses.
With this strong demand, an estimated 20 to 30 applications are expected for each liquor outlet. This high demand underscores the importance of liquor sales as a key revenue stream for the state. While registration department income is the leading source of revenue for Andhra Pradesh, liquor sales come in second.
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