Madhya Pradesh Unveils New Excise Policy: Liquor Shops To Shut In Religious Cities, Heritage Liquor To Be Promoted

The Madhya Pradesh government has introduced its revised excise policy, set to take effect from 1 April 2025. Under the new regulations, liquor shops will be permanently closed in cities of religious significance across the state, reported Business Standard.

The cities affected by this decision include Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Panna, Mandla, Multai, Mandsaur, Amarkantak, Salkanpur, Barman Kala, Linga, Barman Khurd, Kundalpur, and Bandakpur.

The policy explicitly states that no new licences will be issued for wine shops in these locations, and existing establishments will not be allowed to continue operations beyond March 2025.

In a significant development, the policy introduces a new category of establishments, termed ‘Low Alcoholic Beverage Bars’, where beer, wine, and ready-to-drink beverages containing no more than 10 per cent alcohol can be served. However, hard liquor will not be permitted in these outlets.

Another key highlight of the policy is the promotion of heritage liquor, a traditional spirit distilled from Mahua flowers by tribal self-help groups.

The state government had previously committed to encouraging heritage liquor to improve the financial well-being of tribal communities.

Under the new policy, this variety of liquor will be sold at select wine outlets, including those at airports, and will be exempt from state-imposed value-added tax (VAT).

Additionally, the policy allows for the opening of foreign liquor counters at commercial airports across Madhya Pradesh, mirroring existing facilities in Bhopal, Indore, Jabalpur, and Gwalior.

Each airport will be permitted to establish one counter at both arrival and departure terminals.