Punjab allows single malt units in new excise policy

For the first time, the Punjab government has framed rules permitting malt manufacturing (single malt) units in the state, allowing both distilling and bottling operations locally under Excise Policy 2026–27. The move is expected to boost value-added production and strengthen Punjab’s presence in the premium whisky segment.

The policy was approved by the Punjab Cabinet chaired by Chief Minister Bhagwant Mann, setting an ambitious revenue target of ₹12,800 crore, up from ₹6,200 crore in 2022.

Existing licence holders will be allowed renewals with a 6.5 percent increase. Excise duty on liquor, except Punjab Medium Liquor (PML) and Imported Foreign Liquor (IFL), will be levied at 1 percent of the wholesale price, while IFL (BIO Brands) will attract a 1 percent assessed fee at the wholesale stage.

Read Punjab Excise Policy 2026-27

The government has also introduced a technology driven, transparent licensing system aimed at reducing human intervention and curbing corruption.