MP cabinet clears excise policy with export push

The Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav, has approved the state’s excise policy for 2026–27, introducing sweeping reforms aimed at improving transparency, strengthening revenue safeguards and supporting traditional liquor producers. The policy retains key regulatory restrictions, including the continuation of the ban on liquor outlets within five kilometres of the Narmada river banks and in notified holy cities.

A major shift in the new framework is the discontinuation of automatic licence renewals. All 3,553 existing liquor shops will now be allotted through phased e-tendering and e-auction processes. Shops will be grouped into clusters of up to five units to streamline bidding, while district administrations will categorise clusters for phased allotment. The reserve price will be set at 20 percent above the current year’s licence fee. Only electronic invoices and e-bank guarantees will be accepted as security deposits to curb irregularities.

The policy maintains existing duty rates and licence fees for manufacturing units and bars, ensuring operational continuity. In a boost to exports, manufacturers can now declare product prices directly on the government portal without prior approval, alongside simplified label registration norms. Special provisions also support tribal self-help groups producing Mahua liquor, including reciprocal duty-free arrangements with other states to promote heritage and traditional products. The policy will take effect from April 1, 2026.