In a significant policy shift, Madhya Pradesh is set to introduce "Low Alcoholic Beverage Bars" from April 1, marking a first-of-its-kind initiative in the state.
Simultaneously, liquor sales will be prohibited in 19 designated locations, including 17 revered religious towns, as per the newly announced Excise Policy for the upcoming fiscal year, an official confirmed on Sunday.
Introduction of low alcoholic beverage bars
Under the new policy, these specialised bars will serve only low-alcohol beverages such as beer, wine, and ready-to-drink alcoholic products, with a maximum alcohol content of 10 per cent V/V (Volume on Volume).
The sale and consumption of spirits, including whiskey, rum, vodka, and brandy, will be strictly prohibited in these establishments, as stated in a government release.
Currently, Madhya Pradesh has between 460 and 470 liquor-cum-beer bars. With the launch of these new low-alcohol bars, the total number of bars in the state is expected to rise, an official from the Excise Department said.
Liquor sales ban in religious towns and key locations
The policy also mandates the closure of liquor sales in 19 locations, including 17 religious cities, effective April 1. Consequently, 47 composite alcohol shops—comprising both Indian Made Foreign Liquor (IMFL) and country liquor outlets—will be shut down. The religious towns affected by the ban include:
- Ujjain
- Omkareshwar
- Maheshwar
- Mandleshwar
- Orchha
- Maihar
- Chitrakoot
- Datia
- Amarkantak
- Salkanpur
This decision aligns with Chief Minister Mohan Yadav’s announcement on January 23, following the approval of the new excise policy. The ban on liquor sales in these locations is expected to result in an estimated revenue loss of approximately ₹450 crore for the state.
No prohibition law, individual possession allowed
Despite the sales ban, the policy does not impose a prohibition law similar to Bihar or Gujarat. Individuals will still be allowed to procure liquor from outside these restricted zones and consume it privately. However, the absence of a law akin to the Bihar Prohibition Act, 2016, means that carrying or consuming liquor in public within these areas remains legally permissible under the current Madhya Pradesh Excise Act.
A government official clarified, “In legal terms, this policy primarily regulates the points of sale and consumption at licensed bars. There is no restriction on individuals possessing or consuming liquor privately.”
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Changes in liquor licensing and heritage liquor policy
Under the new policy, the annual renewal fees for liquor shop licenses have been increased by 20%. However, Madhya Pradesh’s Heritage Liquor and Wine Production Policy remains unchanged. Producers of heritage liquor will continue to be exempt from Value Added Tax (VAT).
To support the state’s Grape Processing Policy, the government will encourage fruit processing and horticulture expansion to boost farmers’ incomes. Apart from grapes and jamun, wine production will now be extended to include other fruits and honey cultivated in Madhya Pradesh.
Additionally, wine production units in the state will be permitted to operate retail outlets on their premises. Tourists visiting these wineries will also have access to wine taverns, offering tasting facilities on-site.
Expansion of foreign liquor bottling and revenue estimates
The new excise policy also grants permission for foreign liquor bottling units to manufacture, store, export, import, and sell specialty liquors in the state, starting from the next fiscal year.
Currently, Madhya Pradesh operates around 3,600 composite liquor shops, which are projected to generate an estimated revenue of ₹15,200 crore for the current fiscal year.
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