With the commencement of the new financial year on April 1, 2025, several states across India are introducing significant changes to their regulations. Among these, Madhya Pradesh is set to roll out a revamped liquor policy that will introduce ‘Low Alcoholic Beverage Bars’ for the first time while simultaneously halting liquor sales in 19 specific locations.
Introduction of Low Alcoholic Beverage Bars
Under the newly announced policy, Madhya Pradesh will witness the opening of exclusive ‘Low Alcoholic Beverage Bars’ where only beverages with an alcohol content below 10% V/V (volume by volume) will be served. These bars will offer beer, wine, and ready-to-drink beverages, while consumption of hard liquor will be strictly prohibited within these premises.
Current Bar Count to Increase
At present, Madhya Pradesh houses approximately 460 to 470 bars. With the introduction of these new Low Alcoholic Beverage Bars, this number is expected to see a notable rise. An official from the Excise Department confirmed that the policy aims to promote the consumption of beverages with lower alcohol content.
Liquor Sales to Cease in 19 Religious Cities from April 1
A government release stated that from April 1, 2025, liquor sales will be completely banned at 19 locations, including 17 cities of religious significance. Consequently, 47 liquor shops in these areas will be shut down. Notable cities affected by this ban include Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Amarkantak, and Salkanpur.
This decision aligns with an announcement made by Chief Minister Mohan Yadav on January 23, following the approval of the new excise policy. The move is anticipated to result in an estimated revenue loss of approximately Rs 450 crore for the state government.
Increase in Renewal Fees for Liquor Shops
In addition to the prohibition in certain cities, the new excise policy stipulates a 20% hike in the renewal fees for liquor shops across the state. This increase aims to balance the revenue deficit expected from the closure of liquor outlets in the designated regions.
No Restriction on Personal Consumption
While liquor sales will be halted in the 19 specified locations, residents and visitors will still be permitted to bring alcohol from other cities and consume it privately. However, legal experts suggest that a law similar to the Bihar Liquor Prohibition Act, 2016, would be necessary to enforce a complete ban on carrying and consuming alcohol in these regions.
Prohibition Status in Neighboring States
Officials highlighted that neighboring states like Bihar and Gujarat have stringent prohibition laws, while Madhya Pradesh currently operates under the Excise Act. The new policy marks a step towards stricter regulation, although it falls short of imposing an outright prohibition.
Conclusion
The revised liquor policy in Madhya Pradesh is a landmark move aimed at regulating alcohol consumption and promoting low-alcohol alternatives. With the closure of liquor shops in religious hubs and the introduction of Low Alcoholic Beverage Bars, the state is striving to balance social concerns with economic interests as it embarks on the new financial year.