The Andhra Pradesh government has notified the Excise Shops Policy 2026-27, retaining 3,736 retail liquor shops across the State for another year from October 1, 2026, to September 30, 2027.
Of the total shops, 3,396 will remain in the open category and 340 will be reserved for Geetha Kulalu, the toddy-tapping community.
Principal Secretary, Excise, Mines and Geology, Mukesh Kumar Meena issued the order after reviewing excise policies implemented between 2019 and 2024, recommendations of the Group of Ministers and the experience of the 2024-26 policy that expires on September 30.
As part of the new policy, the government has permitted renewal of existing retail liquor shop licences for a year. Licensees opting for renewal will have to pay a Renewal Retail Excise Tax (RET) equivalent to 38% of the annual RET, besides the annual RET and applicable permit-room RET. Annual RET rates for 2026-27 will remain unchanged from 2025-26.
The renewal RET for open-category shops will be ₹23 lakh in areas with populations up to 50,000, ₹27.2 lakh in areas with populations between 50,000 and 5 lakh, and ₹35.5 lakh where the population exceeds 5 lakh. For shops reserved for Geetha Kulalu, the corresponding amounts are ₹11.5 lakh, ₹13.6 lakh and ₹17.8 lakh.
Renewal RET will be paid in a lump sum, along with the first annual RET instalment. A permit-room licence will be mandatory wherever applicable. Licensees paying annual RET in instalments must furnish a bank guarantee equivalent to one three-month instalment.
Existing licensees seeking renewal must pay a processing fee of ₹35,000. Shops not renewed will be allotted through draw of lots for which applicants must pay a non-refundable ₹1,000 application fee. At least four applications will be required. Newly allotted shops will not attract renewal RET.
The policy introduces stronger digital monitoring, including an end-to-end Track and Trace system from production to retail sale, digital stock and sales records, and e-inventory monitoring.
CCTV surveillance
Each shop must install four CCTV cameras covering the sales counter, stock area, consumer area and permit-room area, wherever applicable. The system will be linked to an AI-enabled Command and Control Centre. Deliberate tampering or disruption will invite penalties, with repeated violations potentially leading to licence cancellation.
Penalty for illegal sale
Licensees must strictly adhere to MRP and refrain from unauthorised sales, spurious liquor, brand mixing and dilution. Unauthorised sale will attract a penalty of ₹25 lakh for the first offence, while a second offence may result in cancellation of licence.
