New Excise Policy for 2026-27 in Madhya Pradesh: No Commissioner Approval Needed for Liquor Price Increase
On February 19, the Madhya Pradesh government released its new excise policy for the year 2026-27. The government clarified that no new liquor shops will be opened and existing shops will not be renewed. No new liquor premises (bars) will be opened either. The allocation of the state's 3,553 liquor shops will be done through e-tendering and e-auction. A 20% increase has been made in the reserve price.
The bottling fee for foreign liquor has been raised. The fee for spirits has been increased from ₹6 to ₹12 per proof liter. Similarly, the fee for beer has been raised from ₹3 to ₹6 per bulk liter. These new rates will come into effect from the 2026-27 fiscal year. Now, there is no need to send files to the excise commissioner for price hikes of liquor brands. The distillery will upload applications to a portal, and the system will automatically match the prices with other states. If all conditions are met, automatic approval will be granted.
Old Restrictions Remain Unchanged: No liquor shops will be allowed within 5 kilometers of the Narmada River. The current restrictions on liquor shops in sacred towns will remain in place. The new policy will be effective from the upcoming financial year.
Promotion of Mahua Liquor: Provisions have been made to promote Mahua liquor made by tribal self-help groups. These Mahua-based liquors will be made duty-free in other states, and in return, the heritage and special liquors of those states will be made duty-free in Madhya Pradesh.
The Deputy Chief Minister, Jagdish Devda, shared these provisions of the excise policy in the legislative assembly.