Andhra Pradesh craft beer and microbrewery rules, as of October 2026

Microbreweries are allowed and the map just grew

Until January 2026, microbreweries in Andhra Pradesh were allowed only within municipal corporation limits. In January 2026 the state Cabinet extended them to sites within 5 km of a municipal corporation, notified tourist areas and three-star and above hotels regardless of location (Occasional Drinker, 13 January 2026). The state hotel association welcomed it as a route to beer tourism (The Hans India, 14 January 2026).

We could not find the government order itself, or a current public text of the microbrewery licence conditions, fees or capacity cap. Reports differ on whether tourist areas are designated or notified. Ask the Commissioner of Prohibition and Excise for the order before you choose a site.

How a microbrewery gets its bar licence

The 2017 bar rules, G.O.Ms. No. 235 of 23 June 2017, put microbreweries in the same group as star hotels and tourism centres. They get a Form 2B bar licence on application and eligibility, irrespective of the population limits that cap ordinary bars. The applicant files Form 1A with the Commissioner and a non-refundable fee of ₹2,00,000 for prior clearance (G.O.Ms. No. 235, 2017).

The current bar policy, G.O.Ms. No. 275, runs from 1 September 2025 to 31 August 2028 and moved ordinary bar allocation to a lottery (The Week, 18 August 2025). Confirm how it treats microbreweries, because we only have the 2017 text in hand.

Can the beer leave the premises?

We found nothing in Andhra Pradesh rules or news that lets a microbrewery sell kegs to other bars, or growlers and cans to shops. When the state first planned microbreweries, officials described separate plants, beer tanks and brewmasters serving local beer to customers (The News Minute). Plan on on-site sales and treat any outside supply as unconfirmed until the department says otherwise in writing.

On a coastal site that matters on the floor. Vijayawada and Visakhapatnam summers mean glycol jackets on serving tanks working hard all afternoon. With no outlet for surplus beer you size batches to the taps, not to the brewhouse.

Duty, ARET and APSBCL

Beer in Andhra Pradesh carries excise duty plus an Additional Retail Excise Tax (ARET). An October 2024 amendment covering IMFL, beer, wine and RTDs allowed no retailer margin on ARET and added 20.3% of ARET on the issue price to bar licensees (notification summary). In January 2026 the state removed ARET on IMFL and foreign liquor bought by bars from APSBCL depots, while new procurement guidelines in G.O. No. 25 covered beer as well (Deccan Chronicle, 13 January 2026). The same month's ₹10 price rise on spirits left beer, wine and RTDs at existing prices (Occasional Drinker).

We found no current per litre duty schedule for beer or for microbrewery draught. Ask for it in writing.

The Andhra Pradesh State Beverages Corporation (APSBCL) is the wholesaler. Bars buy their stock from APSBCL depots. A packaged craft brand needs a licensed brewery and an APSBCL listing to reach them.

Pouring beer without a brewery

A restaurant without a brewery has two routes. A full 2B bar licence lets it sell spirits, beer and wine. Under the 2025-28 policy it is allotted by lottery (The Week). The 2017 rules also created Form 2B(P), a licence for a hotel or restaurant to sell beer, wine and RTDs for consumption on the premises in municipal corporations and tourism centres (G.O.Ms. No. 235). Check whether 2B(P) survives in the current policy.

Either way the kegs come through APSBCL, from a licensed brewery, not from a microbrewery.

Contract brewing

We found no contract-brewing provision. A brand owner works with a licensed brewery under the Andhra Pradesh Brewery Rules, 2006 and sells through APSBCL. Our contract brewing guide covers the deal terms.

What to check before you commit

Get the January 2026 microbrewery order, the current licence fee and the duty on draught in writing. Then confirm how the 2025-28 bar policy treats microbreweries. This guide is a working summary dated October 2026, not legal advice. Work with a licensing adviser who files in the state.

Common questions

Does Andhra Pradesh allow microbreweries?

Yes. Since January 2026 they may open within 5 km of municipal corporations, in notified tourist areas and in three-star and above hotels, as well as inside corporation limits. Confirm the government order before you commit.

Can a restaurant in Andhra Pradesh serve only beer and wine?

The 2017 bar rules created Form 2B(P) for beer, wine and RTDs in municipal corporations and tourism centres. Check that it still applies under the 2025-28 bar policy.

Who supplies beer to bars in Andhra Pradesh?

APSBCL. Bars buy stock from its depots, so a craft brand needs a licensed brewery and an APSBCL listing to reach them.