Bhubaneswar: The Odisha Government has announced a new three-year Excise Policy covering the period from April 1, 2026 to March 31, 2029, replacing its earlier system of annual policies. The move is aimed at bringing stability, transparency, and better long-term planning to the state’s liquor sector.
One of the key highlights of the policy is the introduction of a 0.5% de-addiction cess on excise duty. The government said the revenue collected from this cess will be used exclusively to set up and strengthen de-addiction centres across the state, acknowledging the harmful effects of alcohol.
To boost revenue and regulate the trade, the government has increased licence-related costs. Application fees have been raised, while annual licence fees will see a regular increase of around 10–20%. Excise duty on both Indian Made Foreign Liquor (IMFL) and country liquor has also been revised upward.
A major structural reform in the policy is the shift from the Minimum Guaranteed Quantity (MGQ) system to the Minimum Guaranteed Excise Revenue (MGER) model. This change is expected to protect government revenue while reducing pressure on retailers to push excessive liquor sales, which may also help curb illicit liquor activities.
The policy also places strict controls on the expansion of liquor outlets. No new liquor shops will be allowed across the state. New ON shops are banned in rural areas, except in premium hotels (three-star and above) and select clubs in industrial zones. Additionally, liquor outlets will not be permitted near religious locations, including the Shree Jagannath Temple and Bada Danda in Puri. The ban on home delivery of alcohol will continue.
On the manufacturing side, Out-Still (OS) units have been directed to modernize their operations, improve packaging, and install better quality-control systems. Compliance with FSSAI standards and pollution control norms has been made mandatory, with incentives for units that complete upgrades on time.
To improve transparency and monitoring, the government will implement a Track & Trace system to track the movement of Extra Neutral Alcohol (ENA) from production to retail. All manufacturing units and retail shops will also be placed under 24×7 CCTV surveillance, with live monitoring by excise authorities.
In addition, excise laboratories in the state will be upgraded with modern equipment and trained personnel to strengthen quality checks.
Overall, the new policy aims to strike a balance between revenue generation, stricter regulation, and public health concerns, while modernizing Odisha’s excise system.
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