Telangana traders show interest in Andhra liquor market
Traders from Telangana are looking for new business opportunities in the liquor market of Andhra Pradesh, particularly in towns such as Bhimavaram, Tadepalligudem, Tanuku, and Eluru. However, many traders are cautious about fully investing in this market due to concerns about profitability and potential government regulations.
One of the major worries for these traders is that the liquor market in Andhra Pradesh may not be as profitable as they had hoped, especially when compared to the bustling twin cities of Hyderabad and Secunderabad. Additionally, the Andhra Pradesh government has issued strict warnings about liquor pricing. If merchants sell above the Maximum Retail Price (MRP), they face the risk of having their licenses revoked, which has made some traders hesitant.
Despite these concerns, local leaders from both the TDP and YSRCP parties, who previously controlled a significant portion of the liquor market in the area, are forming syndicates. They are partnering with Telangana traders to submit multiple applications for each liquor shop license. This high competition, with an estimated 20 to 30 applications per shop, shows the importance of liquor sales in the region.
Liquor sales are a major revenue source for Andhra Pradesh, second only to the income generated by the registration department. As a result, there is strong interest in securing liquor shop licenses, despite the risks involved.
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