The Madhya Pradesh government has introduced a new category of drinking establishments called ‘low alcoholic beverage bars’ as part of its updated excise policy. These bars will serve drinks containing a maximum of 10 percent alcohol by volumes (v/v), such as beer, wine, and ready-to-drink beverages. However, the consumption of spirits, including whisky, rum, vodka, and other high-alcohol content liquors, will be strictly prohibited within these premises. The policy is set to come into effect on April 1, 2025.
As part of a broader plan to regulate alcohol consumption, the state will also enforce a liquor sale ban in 19 locations, including 17 religious cities. This means the closure of 47 composite alcohol shops, which currently sell both Indian-made foreign liquor and country liquor. The government aims to reduce the availability of liquor in places of religious significance while allowing controlled alcohol consumption in other areas through low-alcohol bars.
Despite these restrictions, the excise department anticipates a significant expansion in the number of licensed bars in Madhya Pradesh. Currently, there are approximately 460 to 470 liquor-cum-beer bars across the state, and the introduction of the new low-alcohol category is expected to increase this number. However, the decision to ban liquor sales in select cities will lead to an estimated revenue loss of ₹450 crore from excise collections. To offset this, the government plans to increase liquor shop renewal fees by 20 percent.
Interestingly, the new policy does not impose a complete prohibition on alcohol consumption in Madhya Pradesh. While liquor sales will be banned in designated religious cities, individuals will still be permitted to bring and consume alcohol privately in areas where prohibition laws do not apply. This approach differs from stricter prohibition laws in states like Bihar and Gujarat, which impose legal penalties on possession and consumption.
In addition to regulating liquor sales, the Madhya Pradesh government is promoting local wine production through its Grape Processing Policy. The policy encourages the use of fruits such as grapes and jamun for winemaking, aiming to boost farmer incomes. Additionally, foreign liquor units will be permitted to manufacture, store, and trade special liquors from the upcoming fiscal year, indicating the state’s balanced approach to both regulation and economic opportunities in the liquor industry.
