Soon after the YSR Congress Party, led by Y S Jagan Mohan Reddy, formed the government in Andhra Pradesh in 2019, it announced a new excise policy aimed at implementing prohibition in a phased manner.
The government took over liquor trading from the private sector and handed it over to the AP State Beverages Corporation. It reduced the number of liquor shops and bars and significantly increased liquor prices under the pretext of discouraging alcohol consumption.
Additionally, the Jagan government allowed several private liquor manufacturers to introduce new, cheap liquor brands while scaling down the procurement of popular brands.
Another major decision was to eliminate digital payments at wine shops. No payments through credit or debit cards or UPI platforms were accepted, only cash transactions were allowed.
Though opposition parties criticized this decision, pointing out that even small vendors accept UPI payments, the Jagan government did not relent.
As a result, there was a lack of transparency in the revenue collections of the excise department, leading to the proliferation of a liquor mafia. Yet, cash transactions continued to be the norm until a few days ago.
Now that the elections are over, the state government has suddenly introduced a new rule disallowing cash transactions. The excise department has issued orders that only digital payments through PhonePe, Google Pay, and other UPI platforms will be accepted at liquor shops.
This sudden shift is causing arguments at wine shops, as many poor people, accustomed to cash payments over the last five years, are unable to make digital payments due to a lack of smartphones or internet access.
Analysts suggest that the government should have sensitized customers well in advance before enforcing the digital payments rule.
