New Liquor Policy Comes Into Effect Today in Telangana

The state’s new liquor policy, which serves as one of its largest revenue generators, will come into force starting Monday. Traders who secured licences have made all necessary arrangements to open their outlets. The revised policy will remain operative until November 2027, and the Excise Department anticipates a substantial boost to state revenue through it.

The previous 2023–25 liquor policy ended on Sunday. During this two-year period, liquor sales increased far beyond expectations. A total of 724 lakh cases of liquor and 960 lakh cases of beer were sold, collectively valued at about Rs. 71,550 crore. In December 2023, the first month of the earlier policy, sales touched Rs. 4,297 crore. Sales between January and December 2024 reached Rs. 37,485 crore, while this year’s January to November sales stood at Rs. 29,766 crore. Around 80 percent of the total sales value flowed directly into the government’s treasury. Application fees and licence charges added further revenue.

Separate Assembly and Parliament elections during the previous policy period also contributed to increased liquor sales. For the new policy, the government has revised several norms to boost revenue further. The application fee for a liquor shop licence has been raised from Rs. 2 lakh to Rs. 3 lakh. Annual licence fees are now divided into slabs based on sales volume. Within GHMC limits, a shop may pay up to Rs. 1.10 crore annually. The department has created five slabs: Rs. 1.10 crore, Rs. 85 lakh, Rs. 56 lakh, Rs. 55 lakh, and Rs. 50 lakh. One-sixth of the annual fee has already been collected.

New licence holders are set to begin operations under the updated policy from Monday. Officials believe the upcoming years could be profitable for traders as well, with gram panchayat, parishad, municipal, and corporation elections scheduled. Large public events, such as the upcoming Medaram Jatara, are also expected to push liquor sales higher. Encouraged by these market prospects, new shop owners are preparing to launch their businesses.