Madhya Pradesh is set to implement a partial liquor ban in 19 locations, including 17 holy cities, while simultaneously allowing “Low Alcoholic Beverage Bars” to operate from April 1 under its new excise policy. The decision, announced by Chief Minister Mohan Yadav, is expected to cause a revenue loss of ₹450 crore for the state government.
As per the policy, the new bars will serve only beer, wine, and ready-to-drink alcoholic beverages with a maximum alcohol content of 10% V/V. Hard liquor consumption will be strictly prohibited in these establishments.
The holy cities affected by the liquor ban include Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Amarkantak, and Salkanpur. In total, 47 composite liquor shops—which sell both Indian Made Foreign Liquor (IMFL) and country liquor—will be shut down in these areas.
However, officials clarified that individual possession and consumption of liquor will not be penalized in these regions, as MP does not have a full prohibition law like Bihar or Gujarat. The Excise Act in force only restricts liquor sale points and public consumption.
To compensate for lost revenue, the policy introduces a 20% hike in liquor shop renewal fees while retaining exemptions for heritage liquor manufacturers from Value Added Tax (VAT). Additionally, wine production in MP will be expanded, allowing the use of fruits, honey, and jamun, with wineries permitted to operate retail outlets and wine-tasting facilities for tourists.
Meanwhile, foreign liquor bottling units will also be allowed to manufacture, store, export, import, and sell special liquors in the next fiscal year. The 3,600 liquor shops across MP are projected to generate ₹15,200 crore in revenue this year.
The move has triggered mixed reactions, with religious groups welcoming the ban while others question the government’s decision to promote low-alcohol bars while restricting liquor in holy cities.
