Starting April 1, 2025, Madhya Pradesh (MP) will introduce ‘Low Alcoholic Beverage Bars’ while simultaneously enforcing a complete liquor ban in 19 designated locations, including 17 holy cities. This move, part of the state's revised excise policy, aims to promote low-ABV (Alcohol by Volume) alternatives while respecting cultural and religious sentiments. The new policy will allow only beer, wine, and ready-to-drink beverages with a maximum of 10% ABV in these bars, strictly prohibiting spirits like whiskey, rum, vodka, and gin.But what does this shift mean for the state’s economy, alcohol consumption habits, and overall regulation? Let’s break it down.
The MP government, led by Chief Minister Mohan Yadav, has taken this step to regulate alcohol consumption while maintaining the sanctity of religious sites. The prohibition will apply to key holy cities such as:
Unlike complete prohibition states like Bihar and Gujarat, MP has opted for a selective ban, restricting alcohol sales in religious hubs while allowing moderate consumption in designated venues.
Liquor sales will be completely prohibited in 19 locations, leading to the shutdown of 47 composite liquor shops that previously sold both country liquor and Indian-made foreign liquor.
MP is expected to incur an excise revenue loss of approximately ₹450 crore due to the restrictions. However, the state anticipates offsetting some of this loss through increased licensing and taxation on low-ABV bars.
With the ban on hard liquor, the state will see a rise in bars that exclusively serve beer, wine, and pre-mixed cocktails with an ABV of 10% or less. This aligns with global trends where consumers are shifting towards lower-alcohol beverages due to health concerns and lifestyle preferences.
Unlike states with complete prohibition, MP’s policy does not impose penalties for personal possession. Individuals can still bring liquor from outside the restricted areas for personal consumption, reducing the risk of illegal bootlegging.
Madhya Pradesh’s move reflects a broader global shift towards reduced alcohol consumption and increased interest in low- and no-alcohol beverages. Studies show that:
Madhya Pradesh’s approach to alcohol regulation is a unique blend of restriction and moderation. By banning liquor sales in religious areas while encouraging low-ABV consumption elsewhere, the state hopes to strike a balance between cultural sensitivity and economic stability.However, questions remain:
Only time will tell if MP’s hybrid approach proves successful or if further adjustments will be needed.
Madhya Pradesh’s new excise policy marks a significant shift in alcohol regulation, embracing global trends while preserving religious traditions. By promoting lower-ABV alternatives, the state aims to modernize drinking habits while maintaining control over high-alcohol consumption in sacred locations.As the policy unfolds, it will be interesting to see how businesses, consumers, and religious institutions respond to this new liquor landscape in MP.
