Andhra Pradesh Hikes Liquor Prices From January 2026: What Changes and What Doesn’t

Andhra Pradesh has implemented a liquor price hike starting January 2026, following a cabinet decision aimed at correcting price imbalances and increasing state revenue.

The revision applies to most India-Made Foreign Liquor (IMFL) and foreign liquor products sold through retail outlets across the state.

What Has Changed

The state cabinet approved a ₹10 increase in the maximum retail price (MRP) of IMFL and foreign liquor bottles across all sizes. The revised prices came into effect immediately between January 8 and January 12, 2026, after formal government orders were issued.

However, the hike does not apply to:

The most affordable liquor category priced at ₹99 for 180 ml

1. Beer
2. Wine
3. Ready-to-drink (RTD) alcoholic beverages

These categories will continue to be sold at existing prices.

Why the Government Raised Prices

According to the state government, the price increase is expected to generate around ₹1,391 crore in additional annual revenue.

Officials say the decision was taken mainly to address long-standing pricing differences between liquor sold at retail shops and bars. Over the years, bar prices had drifted significantly higher due to additional taxation, creating inconsistencies in the system.

Relief for Bars

Alongside the price hike, the cabinet also rolled back the Additional Retail Excise Tax (ARET) imposed on bars.

This move is expected to reduce the financial burden on bar owners by approximately ₹340 crore per year. Before November 2019, bars and retail outlets were charged the same invoice price for liquor. The additional tax introduced later widened the gap, which the government now aims to correct.

Higher Margins for Retailers

The cabinet also approved a 1% increase in retailer margins on MRP.

This higher margin applies to:

IMFL and foreign liquor (including 180 ml bottles)

1. Beer
2. Wine
3. RTDs

The move is intended to help retailers manage costs under the revised pricing structure.

When It Took Effect

The Revenue (Excise) Department issued the official government order (GO MS 22) on January 13, 2026, making the changes effective immediately across Andhra Pradesh.

Other Policy Updates

In a separate decision, the cabinet expanded permissions for microbreweries. These can now operate:

1. Within 5 km of municipal corporation limits
2. In notified tourist areas
3. In three-star and above hotels, regardless of location

The move is aimed at encouraging hospitality and tourism-linked investments.

What This Means for Consumers

The price hike comes just ahead of the Makar Sankranti festival season, when liquor demand typically rises. Consumers buying IMFL and foreign liquor will now pay slightly more per bottle, while beer, wine, and RTDs remain unaffected.

For now, the impact is modest in absolute terms. But it reflects the state’s continued reliance on excise revenue and tighter management of its liquor pricing framework.