Kiran's New Liquor Policy Reverse Effect

CM Kiran Kumar Reddy's efforts to make liquor available to consumers at low MRP rates is not yielding the desired results. As a result of new policy, the liquor syndicates were kept at distance, liquor shops in the state were streamlined, license fee was reduced and consumers were able to get liquor at MRP prices.

Now, the manufacturers were demanding the hike in liquor prices due the increase in production costs. On the other hand, Govt.'s price negotiation officials were suggesting CM to go ahead with the price hike to compensate loss incurred due to low license fee and un-sold 800 liquor shops.

Government is considering the proposal to increase the basic price on liquor by 15 percent, which will levy additional burden of over Rs 3,000 crore on consumers. This move will increase the government revenue to over 2,000 crore and the manufacturers would be benefitted with additional 700 crore. Irony of the story, whatever the changes Govt brings into effect in the name of betterment, it will end up emptying the pockets of consumers!