Madhya Pradesh has introduced a new “low alcoholic beverage bar” concept where drinks with a maximum alcohol content of 10% will be served, including beer, wine, and ready-to-drink options. The consumption of stronger spirits will be banned in these bars. The new policy, effective from April 1, 2025, will also see restrictions on the sale of liquor in 19 places, including 17 religious cities. As part of this, 47 composite alcohol shops will be shut down in these areas.
Currently, there are about 460-470 liquor-cum-beer bars in the state, and with the addition of the new low-alcohol bars, that number is expected to rise. While the ban on liquor sales will apply to the religious cities, individuals will still be allowed to possess and consume alcohol in private settings. The move is expected to lead to a loss of around ₹450 crore in excise revenue.
The new policy also increases renewal fees for liquor shops by 20% and promotes the production of heritage liquor. Additionally, there are plans to expand wine production, using local fruits like grapes and jamun, under the state’s Grape Processing Policy.
The state is expected to see about ₹15,200 crore in revenue from its 3,600 composite liquor shops this fiscal year.
