Excise Policy 2026–27

The Cabinet has taken the following key decisions regarding the Excise Policy for the financial year 2026–27:-

1. The restriction prohibiting liquor shops within a 5-kilometre radius of the banks of the Narmada River shall remain unchanged.

2. The ban on liquor shops in designated holy cities shall continue as before.

3. No new liquor shops will be opened.

4. On-premises drinking facilities (ahatas) attached to liquor shops will not be permitted and shall remain closed.

5. The option for renewal of existing liquor shops has been discontinued.

6. All 3,553 liquor shops will now be allotted exclusively through the e-tender and e-auction process.

7. For e-tender and e-auction, the reserve price of liquor shops will be fixed by increasing the current year’s price by 20 percent.

8. Liquor shops will be grouped for e-tender and e-auction purposes. A group may consist of a maximum of five liquor shops.

9. Based on the reserve price, district-level groups will be classified into three to four batches.

10. The e-tender and e-auction process will be conducted in three to four phases according to these batches.

11. To eliminate the possibility of fraud, only e-challan or e-bank guarantee will be accepted as security deposit. Ordinary bank guarantees and fixed deposits (FDs) will not be accepted.

12. Excise duty rates on liquor, as well as license fees for manufacturing units, bars, and other establishments, will remain unchanged.

13. With a view to promoting exports and enhancing Ease of Doing Business, the following provisions have been introduced:

• Liquor manufacturers will not require prior approval of product prices as in previous years. They may declare the price of their products directly on the designated portal as per prescribed procedures.
• To promote export of liquor outside the country, provisions such as revision of fees and simplification of label registration have been introduced.
• To facilitate duty-free movement of Mahua-based liquor produced by tribal self-help groups in other states, a reciprocal provision has been made whereby heritage or special liquor from those states may be allowed duty-free entry in the State.