The Maharashtra government has taken a major policy step by introducing Maharashtra Made Liquor (MML) - a new category of grain-based alcohol, to be manufactured exclusively within the state. Aimed at bridging the price gap between country liquor and premium spirits, this move is expected to generate up to INR 3,000 crore in additional revenue and rejuvenate under-utilised liquor manufacturing units.
Why MML? The Policy Context
- Economic Pressures: The state’s debt is projected to reach INR 9.32 lakh crore in FY 2025-26. Rising welfare expenditure, including schemes like the Ladki Bahin Yojana, has intensified the search for new revenue sources.
- Committee Recommendations: In January 2025, a panel headed by then Additional Chief Secretary Valsa Nair proposed the creation of MML. The cabinet approved the report on June 10, setting the stage for its implementation.
What Is Maharashtra Made Liquor?
- Category Definition: MML joins existing classifications, Indian Made Liquor (IML) and Indian Made Foreign Liquor (IMFL), but is exclusive to Maharashtra.
- Product Restrictions:
- It cannot be produced outside Maharashtra.
- Cannot be sold under other liquor categories (country liquor, IMFL, beer, wine, etc.).
- Must be manufactured from grains.
- Alcohol Strength:
- General MML products: max 42.8% v/v (25 UP).
- Vodka/Gin: 37.5%–42.8% v/v (35–25 UP).
- Minimum Price: INR 148 for 180 ml to position it between country liquor and IMFL in affordability.
Licensing Rules And Eligibility
- Local Control:
- The head office must be in Maharashtra.
- At least 25% of promoters must be permanent residents of the state.
- No direct or indirect foreign investment permitted.
- Brand Ownership: Only self-owned brands can be used; contract or third-party brands are barred.
- Exclusivity Clause: A brand loses MML status if sold outside Maharashtra.
- Dual Manufacturing Ban: Companies producing IMFL in other states are not eligible for MML licences.
- Labelling Requirements: All bottles must display “For Sale in Maharashtra State Only” along with the MML logo (mandatory even for exports).
Taxation And Price Advantage
- Excise Duty:
- Cost Impact (assuming INR 400 manufacturing cost per litre):
- IMFL retail: ~INR 2,200 (incl. INR 1,800 excise)
- MML retail: ~INR 1,480 (incl. INR 1,080 excise)
→ A savings of roughly INR 700 per litre for consumers.
Impact On Local Liquor Units
- Current Status: Maharashtra has 70 Potable Liquor Licensee (PLL) units:
- 22 defunct
- 16 only hold sales licences without manufacturing
- 32 manufacture liquor, but 10 produce ~70% of the state’s IMFL
- Revival Potential: By allowing PLL units to produce MML, the policy aims to restart idle plants, generate jobs, and diversify the market.
Learning From The Past
Maharashtra previously attempted grain-based liquor production in 2007 under the Food Grain-Based Distillery Scheme. It failed due to:
- Public backlash over diverting food-grains in a drought-prone state.
- Comptroller and Auditor General (CAG) criticism.
- A 2010 Bombay High Court stay on nearly INR 50 crore in subsidies to 23 distilleries.
This time, the government is taking a more controlled approach, focusing on private investment, strict eligibility, and clear branding rules.
Summing Up
The introduction of Maharashtra Made Liquor is a strategic blend of fiscal necessity and industrial revival. By offering lower-taxed, locally controlled grain-based liquor, the state seeks to boost revenues, support struggling manufacturers, and provide consumers with a mid-range alternative to premium IMFL brands. Whether it succeeds will depend on market uptake, enforcement of exclusivity rules, and the state’s ability to avoid the pitfalls that sank past initiatives.
