Bhopal: The Madhya Pradesh excise department has reduced the base (offset) price of over 400 unsold liquor shops by 35% in an effort to attract bidders for the 2026–27 auction cycle. This includes an additional 5% cut announced recently, going beyond the earlier limit of a 30% reduction.
The decision comes after poor response from bidders, leaving hundreds of shops without buyers. The state had set a high revenue target of over ₹19,000 crore and had increased base prices by 20% compared to last year. However, collections are already falling short by around ₹3,000 crore.
To improve participation, the department has also changed its auction strategy. Instead of offering shops in groups, it will now auction them individually, making it easier for smaller bidders to participate. This change was introduced after multiple rounds of auctions failed to generate sufficient interest.
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Typically, liquor shop auctions are completed in three rounds by the end of March, but this year the process has stretched to 15 rounds, with more than 400 shops still unsold. A 16th round of bidding has now begun, including several key locations in Bhopal.
Last year, all 87 liquor shops in Bhopal were successfully auctioned, generating ₹1,193 crore—about 11% above the target. For 2026–27, the reserve price was initially set much higher at ₹1,432 crore, which may have contributed to the weak response from bidders.
Overall, the price cuts and revised strategy reflect the government’s urgency to close the gap and ensure better participation in the remaining auctions.
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