MP to see new Low Alcoholic Beverage Bars from April 1; liquor sales to stop in 19 places

Bhopal: (First, “Low Alcoholic Beverage Bars” will come up in Madhya Pradesh from the next fiscal starting April 1, while the liquor sale will be restricted in 19 places including 17 holy cities under the new Excise Policy released Sunday, an official said.

In these new bars, only beer, wine, and ready-to-drink alcoholic beverages with a maximum alcohol content of 10 per cent V/V (Volume on Volume) will be allowed for consumption.

The consumption of spirits will be strictly prohibited in such bars, a government release stated.

Currently, 460 to 470 liquor-cum-beer bars exist across MP. The overall number of bars will shoot up with these new set of outlets, an excise department official told the news agency.

Altogether 47 composite alcohol shops will shut down under the liquor sale ban in 19 places, including 17 holy cities, from April 1, the government statement said. A composite shop comprises an Indian Made Foreign Liquor and a country liquor outlet.

Some of the holy cities where the liquor sale ban will kick in are Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Amarkantak and Salkanpur.

The liquor sale ban was announced by CM Mohan Yadav on January 23 after the new excise policy was cleared. The state government will lose about Rs 450 crore in excise revenue due to this move.

However, no penalty will be imposed for fetching booze from outside and drinking it individually in such areas as prohibition law is not in force in MP, officials explained.

To prohibit carrying and consuming liquor where outlets are going to be closed, a law akin to the Bihar Prohibition Act, 2016, is needed in MP. Besides Bihar, Gujarat has a prohibition law in place, officials said, adding that MP has only the Excise Act in force.

“In a purely legal sense, it restricts the points of sale and consumption in terms of sitting in bars, etc. There is no individual restriction. People can possess liquor and consume it individually, not collectively,” one of the officials said.

The government statement said that under the new excise policy for the next fiscal, liquor shop renewal fees have been hiked by 20 per cent.

However, the Heritage Liquor and Wine Production Policy will remain unchanged. 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 beginning the next fiscal.

According to an estimate, 3,600 composite liquor shops across MP will bring in an estimated revenue of around Rs 15,200 crore this fiscal.