Madhya Pradesh Introduces ‘Low Alcoholic Beverage Bars’ Under Revised Excise Policy

New Category of Bars to Serve Low-Alcohol Drinks

Madhya Pradesh has introduced a new category of bars called ‘low alcoholic beverage bars’ as part of its revised Excise Policy, which will take effect from April 1, 2025. These bars will exclusively serve beverages with an alcohol content of up to 10% v/v (volume on volume), such as beer, wine, and ready-to-drink beverages. Strong spirits like whiskey will not be allowed in these establishments.

Liquor Sale Ban in 19 Religious Places

In a significant move, the state government has also decided to ban liquor sales in 19 locations, including 17 religious cities. The affected cities include:

  • Ujjain
  • Omkareshwar
  • Maheshwar
  • Mandleshwar
  • Orchha
  • Maihar
  • Chitrakoot
  • Datia
  • Amarkantak
  • Salkanpur

As part of this prohibition, the government will shut down 47 composite liquor shops that sell both Indian-made foreign liquor (IMFL) and country liquor.

Revenue Impact and Compensatory Measures

The liquor ban in these religious cities is expected to cause a revenue loss of approximately ₹450 crore. To offset this loss, the government has decided to increase the renewal fees for liquor shops by 20% in the next fiscal year.

Policy Focuses on Regulation, Not Personal Consumption

While the revised policy restricts liquor sales and public consumption in bars, it does not impose any personal restrictions on drinking. Individuals can still buy, possess, and consume liquor privately.

Chief Minister Mohan Yadav stated that the new policy aims to regulate alcohol consumption while respecting the religious and cultural sentiments of the affected areas. With around 460-470 liquor-cum-beer bars already operating in the state, the introduction of ‘low alcoholic beverage bars’ is expected to increase this number while promoting responsible alcohol consumption.

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