Mahabubnagar: Liquor sales across state borders depend on the local excise policies, as well as the quality, variety, and pricing of the available products. Changes in these factors can significantly affect sales on either side.
In the Telugu states, a new liquor policy in Andhra Pradesh is impacting sales in Telangana’s border areas. Shops in the old Mahabubnagar district, which borders Kurnool and Guntur in AP, are seeing fewer customers, leading to a noticeable drop in sales.
Previously, liquor outlets in Alampur and Macherla were popular with Andhra Pradesh residents. Differences between the two states’ liquor policies drew many customers to Telangana. Under former Chief Minister YS Jagan Mohan Reddy, AP sold liquor only through state-run outlets. The limited choice, questionable quality, and high prices sent AP customers to Telangana, where they found popular brands at better prices.
With Chief Minister N. Chandrababu Naidu‘s government, the policy changed. Over 3,000 private and retail vendors now sell liquor in AP, offering more choices at reduced prices, though still higher than in Telangana. This has led to a nearly 50% decline in sales in Telangana’s border towns.
Narender, from Kurnool, notes that while AP prices fell, quality issues remain. He estimates only a 3–5% sales drop in Telangana because some AP residents still prefer Telangana’s quality. In AP, certain brands cost at least Rs 10 more than in Telangana, which affects customer satisfaction.
Laxmikanth Reddy from Alampur remembers when the Pullur toll plaza was crowded with AP customers before 2024. Now, those crowds have diminished. He observes a nearly 50% sales cut in border shops, with only 2–5% of AP customers returning for better quality.
For shop owners in Mahabubnagar’s border areas, the change is significant and rapid. A once-profitable market, heavily reliant on AP customers, is shrinking. Only loyal customers who prioritize quality continue to visit. While Telangana still offers better brand variety and perceived quality, AP’s improved pricing and access are changing the dynamic. If this trend continues, the thriving liquor trade along the Telangana-AP border may need new strategies to survive.
