Starting September 1, 2025, Andhra Pradesh will implement an updated bar policy that shifts the narrative from revenue‑centred regulations to public health, quality, and inclusion. Chief Minister N. Chandrababu Naidu and his cabinet have implemented significant changes, including issuing licenses through transparent lotteries, establishing reserved quotas for marginalized communities, lowering alcohol content, and enforcing a strict crackdown on illicit and substandard liquor.
The policy reframes alcohol regulation with an explicit public health mandate. CM Naidu mandated that low‑alcohol‑content beverages be prioritized to safeguard consumers – especially poorer families – from the risks posed by high‑alcohol or adulterated liquor, a menace he says afflicted lakhs during the previous regime.
Policy drafting relied on inputs from a cabinet subcommittee and various stakeholders.
Licensing will now be conducted via lottery, replacing opaque bidding. Each lottery requires a minimum of four applicants, ensuring fairness.
License fees, graded by area population, are:
Applicants pay an INR 5 lakh application fee, with annual license payments allowed in six installments, and a bank guarantee equating to one installment required. Operations are pegged between 10 AM and 11 PM.
Reflecting social equity goals, 10% of bar licences are reserved for Backward Class communities and toddy tappers. In many instances, these licenses come at half the normal fee.
A key victory of the new policy is the dramatic shift toward quality national and multinational brands. Previously obscure or low‑quality brands, prevalent under the prior regime, have nearly vanished, significantly minimizing health risks.
The state has declared 12 districts free of illicitly distilled (ID) liquor, with plans to cover all 26 districts by September – adding eight more this month.
Consumers are benefiting from price reductions of INR 10 to INR 100 across major liquor brands – cumulative savings estimated at INR 110 crore per month.
Improved affordability and availability have discouraged cross‑border liquor purchases, reducing illicit flows and bolstering state consumption.
These reforms are expected to yield approximately INR 700 crore from application and license fees alone.
Andhra Pradesh’s new bar policy – effective September 1, 2025 – marks a significant shift toward public health, transparency, equity, and law enforcement in alcohol governance. By introducing lottery-based licences, reserving slots for marginalized groups, cleaning up the liquor market, and making quality alcohol affordable, the government seeks to blend social welfare with fiscal sustainability.
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