In a shift from past policy, excise department officials in Telangana are now under pressure to increase liquor sales, including promoting unauthorized ‘belt shops’ in rural areas. Reports suggest that the excise officials have issued verbal orders instructing lower-level officials to meet aggressive liquor sale targets, leading to a growing number of belt shops across villages. Officials failing to meet these targets may face disciplinary action, including transfers with a one-year ban on postings.
Previously, belt shops—unlicensed liquor outlets—were raided by excise officers. However, under current directives, these shops are being tolerated, and even encouraged, to drive up revenue. This development aligns with the state government’s intensified focus on maximizing liquor revenue to fund schemes and other election promises.
In 2023, the excise department collected Rs. 32,000 crore from 2,620 A4 licensed liquor shops, 1,200 bars and clubs, and other duties. This year’s target has been raised to Rs. 45,000 crore, with excise officials across districts assigned specific sales goals, ranging from 10% to 25% increases depending on the excise stations’ reach.
For instance, a liquor shop with Rs. 20 lakh sales last November has been instructed to sell Rs. 25 lakh worth of goods by the same time this year. To meet these increased targets, liquor merchants are setting up belt shops, often located within grocery stores and other general retail locations. According to a senior excise official, there are now 1.75 lakh belt shops across the state, a number that could rise to two lakh within months.
Although A4 liquor shops are strictly regulated to sell alcohol at MRP (maximum retail price), enforcement for belt shops remains lenient. A recent circular from the Excise Commissioner mandates all licensed liquor shops to display MRP tables prominently. However, this restriction does not extend to unauthorized outlets, and excise officials are reportedly considering limited MRP violations for belt shops to attract more customers.
Currently, many of these shops charge an additional Rs. 10-15 per quart, which officials believe has deterred some drinkers. If MRP rules are loosened in these unauthorized shops, officials expect an increase in consumption. Additionally, excise officials are drafting agreements with belt shop owners to enable regulated price adjustments, formalizing these informal outlets.
Excise officials who fall short of sales targets are being closely monitored and have received warnings. Over the past two months, 30 excise circle inspectors (CIs) were issued memos citing ‘performance not up to mark’. The first memo serves as a caution, while a second failure could result in transfers and an extended posting suspension. Officials have also been encouraged to promote liquor sales in accessible, high-traffic areas. Last month, sales reports across 18 districts flagged insufficient sales, leading to targeted memos for station officers with low performance.