Telangana state government’s new liquor policy came into effect on Monday, marking a major shift in one of its highest-revenue sectors. Traders who secured licences under the revised system have completed arrangements to open outlets. The policy will remain in force until November 2027 and is expected to contribute significantly to the state exchequer, according to the Excise Department.
The outgoing 2023–25 liquor policy concluded on Sunday, during which liquor sales recorded an unprecedented surge. A total of 724 lakh cases of liquor and 960 lakh cases of beer were sold over the two-year period, generating business worth Rs 71,550 crore. December 2023 alone saw sales of Rs 4,297 crore, while between January and December 2024 the total crossed Rs 37,485 crore. Sales between January and November this year amounted to Rs 29,766 crore. About 80 percent of this revenue accrued to the state through taxes, in addition to licence and application fees.
The election cycle played a significant role in boosting sales during the previous policy phase, with both Assembly and Parliament polls contributing to increased demand. In a bid to maximise revenue further, the Excise Department made key revisions in the new policy. The licence application fee has been raised from Rs 2 lakh to Rs 3 lakh. Annual licence fees have been classified into slabs based on sales volume, with outlets under the GHMC limits required to pay up to Rs 1.10 crore per year. Other slabs include Rs 85 lakh, Rs 56 lakh, Rs 55 lakh and Rs 50 lakh. The department has already collected one-sixth of the annual licence fee in advance from shop owners.
New licence holders are set to begin commercial operations under the revised framework today. Officials expect favourable profit opportunities for traders during the policy period. Liquor sales are projected to rise further due to the upcoming gram panchayat, parishad, municipality and corporation elections, as well as large-scale celebrations such as the Medaram Jatara. Traders are entering the new business cycle with strong expectations of increased revenue.