Revenue from alcohol sales doubled in the past 7 years

ID liquor crackdown, policy change, MRP revision reasons for revenue increase

The revenue from the sale of all forms of alcohol in Telangana has doubled in the past seven years. From ₹12703.56 crore recorded in the financial year 2015-16, it has increased to ₹25584.94 crore in 2021-22. The difference is 101% increase.

Sharp spikes in sales were observed year-on-year from 2016-17. This has continued till 2019-2020.

Officials in the State Prohibition and Excise department have cited three reasons for increase in the revenue. The first one is the demand for alcohol has increased from 2016 as they have cracked down on sale of gudumba (illegally distilled liquor).

With ID liquor out of market, the demand for beer and Indian made Foreign Liquor (IMFL) has increased. IMFL includes rum, whisky, brandy, vodka.

The MRP of all forms of alcohol is usually increased every two-years which has added to increase in the revenue.

“Besides, the percentage of Excise Duty and VAT was changed which has contributed to the increase,” said an official from the department.

The sales of alcohol took a hit, understandably, after COVID-19 started to spread from March-2020. Marginal drop in the revenue from alcohol sales was recorded in 2020-21. This was the only time when the sales have declined. It has increased the following year.