The Hindu : Andhra Pradesh News : Heady stuff set to turn pricey

Online edition of India's National Newspaper
Thursday, May 12, 2005

Andhra Pradesh

Andhra Pradesh

Heady stuff set to turn pricey

K. Srinivas Reddy

Customers are literally stocking up liquor bottles after buying them at old rates

Stock is up: Wine bottles display at a pub in Hyderabad.

HYDERABAD: There is no glib talk involved in selling liquor. Customers would know what they want. But nowadays, there is this mantra, which would convince any customer to buy the bottle quickly.

"Old stock sir. Price of this brand will increase at least by Rs. 300 when the new stocks arrive." The statement is too often heard in liquor retail outlets nowadays because of a peculiar situation. The Andhra Pradesh Beverages Corporation Limited (APBCL) has hiked prices of most of the popular brands, but they will be effective only when the retailer lifts the fresh consignment.

Buying frenzy

With the retailers across the State having stocks, which might last for another two weeks, customers are literally stocking up liquor bottles after buying them at old rates.

The steep price hike, liquor traders apprehend, could lead to massive smuggling of liquor from the neighbouring States, since most of the brands are being sold at half the price there, compared to Andhra Pradesh.

In fact, smuggling of liquor bottles has already begun, though on a smaller scale in districts on the State's borders, police officers say.

Meteoric rise

According to the new prices fixed by the APBCL, a full bottle of a particular brand of whisky would cost around Rs 414 (plus 20 per cent of retailer's margin), while it now costs only Rs 260 in Bangalore. Similarly, a full bottle of Scotch whisky bottled in India would cost Rs 1,476 (plus retailers margin), while it costs a mere Rs 789 in Bangalore!

Interestingly, liquor companies offer the same sale prices with a little change in transportation charges, to all the States.

In addition to the enhanced margin for the APBCL on the sale, it had also reduced the retailer's margin from 30 per cent on all types of liquor to 20 per cent on whisky, 27 per cent on cheap liquor and 25 per cent on the sale of beer.

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