The liquor shops in declared holy areas will be closed from April 1, 2025 The areas include Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Panna, Mandla, Multai, Mandsaur, Amarkantak, Salkanpur, Barman Kalan, Linga, Barman Khurd, Kundalpur, and Bandakpur. Under the new policy, no licenses for wine outlets will be issued or permitted to operate in these areas from April 1, 2025.
The operation and administration of liquor shops in new districts will be managed by the respective district collectors. To support tribal communities, wine and heritage liquor sales will be allowed at designated wine shops. Heritage liquor sales will also be permitted at airport counters. No liquor consumption will be allowed on shop premises.
Formation of District Disposal Committees
A District Disposal Committee will be established in each district under the new excise policy. These committees will oversee the relocation of liquor shops, identify potential areas for shops, determine reserve prices, and manage the formation or reorganization of shop groups. In case of unavoidable circumstances, the Excise Commissioner may propose shop closures, with the final decision resting at the state government level.
For the financial year 2025-26, the reserve price has been determined after a 20% increase in the annual price of 2024-25. Current license holders from 2024-25 will be given the first opportunity to renew their licenses. Thereafter, lottery applications will be invited. If at least 80% of the district's reserve price revenue is collected through renewals and lottery applications, the district will be considered renewed. If necessary, e-tendering and e-tender-cum-auction methods will be used for allocation.
POS Machines at All Liquor Shops
All liquor shops will be equipped with point-of-sale (POS) machines. Billing and sales will only be done after scanning the Excise Adhesive Label (EAL) on liquor bottles. Blacklisted individuals will not be eligible to apply for liquor shop licenses. Foreign liquor warehouses will be converted into smart warehouses, and biometric e-locks will be implemented.
Licenses for foreign liquor counters will be issued at airports operating commercial flights, similar to Bhopal, Indore, Jabalpur, and Gwalior airports. One counter each will be permitted at arrival and departure gates.
A new category of "Low Alcoholic Beverage Bar" will be introduced in 2025-26. Under this license, only beer, wine, and ready-to-drink alcoholic beverages with a maximum alcohol content of 10% V/V will be allowed for consumption in restaurants. The consumption of spirits will be strictly prohibited.
For commercial events, a separate license fee category (FL-5) will be introduced. Events where entry is based on a paid ticket will be charged a liquor license fee based on the number of attendees.
Heritage Liquor and Wine Production Policy
The policy and system for heritage liquor will remain unchanged from 2024-25. Heritage liquor manufacturers will continue to be exempt from Value Added Tax (VAT).
Under the state's Grape Processing Policy, fruit processing and horticulture expansion will be promoted to increase farmers' income. In addition to grapes and jamun, wine production will be allowed from other fruits and honey produced and collected in Madhya Pradesh.
Wine production units in the state will be allowed to operate retail outlets on their premises. A wine tavern (wine-tasting facility) will be permitted for tourists at the winery premises.
Foreign liquor bottling units will be permitted to manufacture, store, export, import, and sell special liquors from 2025-26.
