The Madhya Pradesh government has rolled out a significant change in its liquor policy, introducing ‘Low Alcoholic Beverage Bars’ while enforcing a strict ban on liquor sales in religious cities. The policy, which will come into effect from April 1, 2025, aims to regulate alcohol consumption and promote healthier drinking habits.
What Are ‘Low Alcoholic Beverage Bars’?
Under the new excise policy, the state will permit the establishment of bars that serve beverages containing up to 10% alcohol by volume (v/v). These include beer, wine, and ready-to-drink alcoholic beverages, while stronger spirits like whiskey, rum, and vodka will be strictly prohibited.
Ban on Liquor Sales in 19 Religious Cities
As part of its commitment to maintaining the sanctity of religious locations. The government has announced the closure of 47 composite liquor shops in 19 religious towns. The affected locations include prominent pilgrimage sites such as Ujjain, Omkareshwar, Maheshwar, Orchha, Maihar, and Chitrakoot. A composite liquor shop includes both Indian-made foreign liquor (IMFL) and country liquor outlets.
Financial Implications: A ₹450 Crore Revenue Cut
The prohibition of liquor sales in these cities is expected to lead to an estimated revenue loss of ₹450 crore for the state government. To counterbalance this loss, authorities have decided to implement a 20% hike in the renewal fees for existing liquor shops across the state.
Boost for Heritage Liquor and Wine Industry
In a move to promote local and traditional beverages, the policy retains the existing Heritage Liquor and Wine Production Policy. Producers of heritage liquor will continue to enjoy VAT exemptions, while wine production will be encouraged using fruits and honey under the state’s Grape Processing Policy. This initiative aims to provide an economic boost to farmers and small-scale producers.
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A Shift Towards Responsible Drinking
This new policy reflects the Madhya Pradesh government’s strategy to curb excessive alcohol consumption while still supporting controlled, low–alcohol alternatives. By shutting down liquor shops in religious towns and introducing regulated drinking spaces. the government aims to strike a balance between public health, cultural values, and economic considerations.
Public Reactions: Mixed Opinions
The decision has garnered mixed responses. While religious groups and social activists have welcomed the liquor shop closures, industry stakeholders and business owners have expressed concerns over potential financial setbacks. However, the introduction of ‘Low Alcoholic Beverage Bars’ has been seen as a progressive step towards moderation rather than outright prohibition.
As the policy rolls out in the coming months, its impact on Madhya Pradesh’s socio-economic landscape will be closely observed.
