AP’s new liquor policy dents TG border sales

Mahabubnagar: Cross-border liquor sales hinge on excise policies in the respective states, quality, varieties available, and prices. Sudden shifts can upend sales on either side of the border.

A ‘case’ in point in the Telugu states is Andhra Pradesh’s newly revamped liquor policy, which has begun to make its presence felt in Telangana’s border districts, with sales in several wine and liquor shops witnessing a steep decline—particularly in the erstwhile Mahabubnagar district, which shares borders with Kurnool and Guntur districts of AP.

Until recently, vends in the border areas of Alampur and Macherla were the go-to spots for customers from Andhra Pradesh. Shops here were bustling with heavy footfall, thanks to the stark difference in liquor policies between the two states. Under former chief minister YS Jagan Mohan Reddy’s government, liquor was sold exclusively through government-run outlets across the state. The choice of brands was limited, quality often questionable, and the prices hefty; driving many AP customers across the border to embrace sellers in Telangana, where most popular brands were readily available at relatively affordable prices. With the change in government, Chief Minister N. Chandrababu Naidu has overhauled the old liquor policy, granting licences to over 3,000 private and retail vendors. Liquor is now sold openly across AP, with greater availability of choices and at lower prices than before; yet slightly, costlier than in Telangana. This shift has resulted in nearly a 50% drop in liquor sales in Telangana’s border towns to customers from AP.

Narender, a resident of Kurnool living in the Alampur border area, observed that while prices in AP have reduced under the new policy, quality concerns persist. “Even though the new policy has been implemented, people in border areas still prefer liquor from Telangana. As per my estimate, sales here have dropped only by 3–5% because of AP customers switching over. Many are still crossing the border due to quality differences. In AP, some brands cost at least Rs 10 more than in Telangana, and people are not happy with what’s available,” he told ‘The Hans India’.

Laxmikanth Reddy of Alampur recalled the bustling scene at the Pullur toll plaza, which was once thronged by customers from AP before 2024. “Now, the crowds are gone. The new policy has cut sales in border shops by almost half. Only a small fraction—maybe 2–5%—of AP customers still come here, mainly for better quality,” he observed.

For shop owners in Mahabubnagar’s border areas, the change has been swift and sharp. What was once a lucrative market, fuelled largely by AP-origin customers, has now declined; with only loyal, quality-conscious buyers making the rounds. While Telangana still retains an edge in brand variety and perceived quality, Andhra Pradesh’s more competitive pricing and increased accessibility are shifting the balance. If the trend continues, the once-bustling liquor hubs along the Telangana-AP border may have to rethink their strategies—or risk toasting to the end of an era in cross-border wine sales.