AP nets record profits on increased liquor sale

It is highly disgraceful that the law has been amended entrusting the welfare schemes responsibility to the Beverages Corporation, Leader of Opposition in the Legislative Council, Yanamala Ramakrishnudu, said in a statement.He lashed out at the Jagan regime saying it gave up its promise of liquor prohibition and was now solely banking on liquor sale for implementing the welfare schemes.How could they link a scheme like Ammavodi, meant to increase enrolment in schools, with liquor sale

Opposition parties in Andhra Pradesh castigated the Y S Jagan Mohan Reddy government's liquor policy even as the latter on Thursday boasted of record sales and profits in the last three years.

The government said the liquor money would be used for some of its major freebie schemes and amended a law to enable this.

The government, however, claimed consumption of liquor in Andhra Pradesh fell by 37 per cent and beer by 77 per cent.

In the first eight months of this calendar year, the state government – which is now the sole wholesaler and retailer of liquor – earned a record profit of Rs 12,005.56 crore out of a total revenue of Rs 14,375.23 crore.

In 2020, the Covid-19 lockdown notwithstanding, the government earned a profit of Rs 13,435.65 crore from a total revenue of Rs 16,979.44 crore.

In 2019, the gross revenue was Rs 17,625.78 and profit Rs 12,541.74 crore, the government informed the state Legislative Assembly.

(Given the current trend in sales, the profit on liquor is expected to cross at least Rs 18,000 crore this calendar year, according to official sources).

The liquor sale issue was raised through a question by Telugu Desam Party members Anagani Satya Prasad and others (who boycotted the ongoing session on a protest), who sought to know by when would the YSR Congress government implement liquor prohibition in the state in accordance with its assurance to the people.

The government said it was committed to its "avowed policy of reduction in consumption of liquor" and gave details of revenue and expenditure through liquor sale since January 2019.

"Liquor rates have been increased to keep the poor people away from consumption. The government has taken over retail trade through the AP State Beverages Corporation and reduced the number of shops from 4,380 to 2,934," Deputy Chief Minister (Excise) K Narayana Swamy said in the reply tabled in the Assembly.

On Wednesday, the state Legislature passed a Bill amending the AP (Regulation of Trade in IMFL and FL) Act, 1993, making the Beverages Corporation responsible for implementing welfare programmes like Cheyuta, Aasara and Ammavodi to the extent of their application to Scheduled Castes, Scheduled Tribes and Backward Classes.

Incidentally, the state government has escrowed the revenue accrued in the form of Additional Excise Retail Tax to help the State Development Corporation raise loans for those three freebie scheme that have a total annual outlay of Rs 16,899 crore.

"The state has been brought to such a pathetic stage where welfare programmes are linked to liquor consumption. It is highly disgraceful that the law has been amended entrusting the welfare schemes' responsibility to the Beverages Corporation," Leader of Opposition in the Legislative Council, Yanamala Ramakrishnudu, said in a statement.

He lashed out at the Jagan regime saying it gave up its promise of liquor prohibition and was now solely banking on liquor sale for implementing the welfare schemes.

"How could they link a scheme like Ammavodi, meant to increase enrolment in schools, with liquor sale? Will the dole not be given to mothers unless the fathers buy and consume liquor?" Yanamala wondered.

MLC Vitapu Balasubrahmanyam said amendment to the liquor Act would only bring ignominy to the government.

"Will you tell the children that they are drawing the Ammavodi dole only because their fathers are drinking (liquor)?" he asked and demanded that the amendment be withdrawn.

BJP member P V N Madhav and Progressive Democratic Front members K Narasimha Reddy and I Venkateswara Rao too criticised the state government's decision.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)