Aps new excise policy hits karnataka’s border liquor trade, bars wear deserted look
A shift in Andhra Pradesh’s excise policy has begun to dent Karnataka’s state treasury, with bars and liquor shops in border districts like Kolar now recording a sharp drop in sales as Andhra’s liquor consumers stop crossing the border.
Kolar: A shift in Andhra Pradesh’s excise policy has begun to dent Karnataka’s state treasury, with bars and liquor shops in border districts like Kolar now recording a sharp drop in sales as Andhra’s liquor consumers stop crossing the border.
Earlier, under the YSR Congress government led by Jagan Mohan Reddy, Andhra Pradesh had imposed a steep liquor price hike under its 2019–2020 excise policy. The inflated prices drove thousands of Andhra tipplers to Karnataka’s border districts, where well-known brands were available at cheaper rates. The spillover ensured booming business for bars, wine stores, and restaurants in Kolar, Bangarpet, Mulbagal, Srinivasapura and KGF areas.
In fact, the trend was so strong that several bars and restaurants from Kolar town relocated closer to the Andhra border to cash in on the rush. The result: Karnataka’s excise department saw crores flowing into its coffers through increased sales and taxes.
But all that has changed since September last year, when the newly-elected Telugu Desam Party government led by Chandrababu Naidu revised Andhra’s excise policy. Now, the same popular Karnataka brands are easily available in Andhra Pradesh itself at competitive rates. This has stemmed the inflow of Andhra drinkers into Karnataka’s border towns.
According to Kolar Deputy Commissioner of Excise Syed Azmat Apreen, the district has seen a 4.32% drop in liquor sales in just one year. Annual IML (Indian Made Liquor) sales have fallen by 99,320 boxes, while beer sales are down by 67,143 boxes.
Bar owners say they are reeling under double pressure. “After the Andhra policy changed, there’s no business at all. On top of this, the Karnataka government has increased the licence renewal fees. We are struggling to stay afloat,” lamented Chalapathi, a local bar owner.
Many fear the trend could hit hundreds of livelihoods along the border if the Karnataka government doesn’t revise its excise policies to adapt to the new reality.
