Madhya Pradesh will restrict the sale of liquor in 19 places, including 17 religious cities, under its new Excise Policy from April 1, 2025.
The state has also introduced a ‘low alcoholic beverage bar’, wherein drinks with a maximum of 10 per cent alcohol content will be served, a news agency PTI report said.
An official said that as per the new policy, which was released on Sunday, these low-alcohol bars would serve beer, wine and ready-to-drink alcoholic beverages. Only those drinks with an alcohol content of up to 10 per cent v/v (volume on volume) would be allowed for consumption in the new bars.
The government release further said that the consumption of spirits will be strictly prohibited in such bars.
How many liquor stores are there in MP?
At present, there are around 460 to 470 liquor-cum-beer bars across Madhya Pradesh and with the addition of the new outlets, the number of bars will increase significantly, an excise department official told the new agency.
Which holy cities will have a liquor sale ban?
Notably, the government will shut down 47 composite alcohol shops under the liquor sale ban that will come into effect in 19 places, including 17 holy cities, from April 1.
A composite shop includes one outlet each for Indian-made foreign liquor and country liquor.
The religious cities of Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchcha, Maihar, Chitrakoot, Datia, Amarkantak, and Salkanpur, will all witness a liquor sale ban from the start of the next fiscal.
‘Loss of ₹450 cr excise revenue’
The move, which was announced by chief minister Mohan Yadav after the clearance of the new excise policy, will cause a loss of about ₹450 crore in excise revenue for the state government.
Additionally, under the new excise policy for the next fiscal, the renewal fees for liquor shops will increase by 20 per cent, the government statement read.
However, the Heritage Liquor and Wine Production Policy will remain the same. Manufacturers of heritage liquor will continue to be exempted from Value Added Tax (VAT).
As per an estimate cited by the PTI report, 3,600 composite liquor shops across Madhya Pradesh will bring in an estimated revenue of around ₹15,200 crore this fiscal year.
Can alcohol still be consumed in MP?
Though a ban on liquor sale will be imposed in 19 places, an official explained that there will be no penalty on acquiring alcohol from outside and drinking it individually in places where the prohibition law is not in force.
In order to prohibit carrying and consuming liquor where outlets will be closed, a law similar to the Bihar Prohibition Act 2016 is required.
Other than Bihar, Gujarat also has a prohibitory law in place. Madhya Pradesh is the only one with an Excise Act in force.
“In a purely legal sense, it restricts the points of sale and consumption in terms of sitting in bars, etc. There is no individual restriction. People can possess liquor and consume it individually, not collectively,” an official said.
Wine and liquor production
According to MP’s Grape Processing Policy, fruit processing and horticulture expansion will be promoted to increase the income of farmers.
In addition to grapes and jamun, wine production will also be allowed from other fruits and honey produced and collected in the state, the report added.
Foreign liquor units will be allowed to manufacture, store, export, import, and sell special liquors from the next fiscal.
(with PTI inputs)