Bhubaneswar, March 26 – The Odisha Government has announced a new three-year Excise Policy, which will be effective from April 1, 2026, to March 31, 2029.
The state excise department has moved from an annual to a three-year excise policy, intending to provide enhanced stability, uniformity, and transparency in the administration of the sector.
In a significant move, under the new policy, the state government, honouring religious and cultural sentiments, has announced that no liquor shops will be allowed to operate near the Shree Jagannath Temple and Grand Road (Badadanda) in Puri.
The three-year excise policy also explicitly prohibits the home delivery of liquor. In addition, the government has introduced a 0.5 per cent De-Addiction Cess on excise duty, acknowledging the harmful effects of alcohol consumption.
According to a press statement issued by the department, the revenue generated from this cess will be exclusively used to establish and strengthen model de-addiction centres across the state.
The policy introduces a major shift from the Minimum Guaranteed Quantity (MGQ) system to a Minimum Guaranteed Excise Revenue (MGER) model. This transition is designed to protect state revenue while removing the pressure on vendors to aggressively push sales volumes to meet quotas, thereby curbing unhealthy trade practices.
The government has also raised the application fees for different excise licences by 10 per cent, along with an annual increase in licence fees ranging between 10 per cent and 20 per cent each year.
The state government has also implemented an increase in duties on both Indian Made Foreign Liquor (IMFL) and Country Liquor (CL) under the new policy.
The state has announced that no new ‘OFF’ shops, Country Liquor (CL) shops, or Out-Still (OS) shops will be allowed to open anywhere in the state. Additionally, no new ‘ON’ (bar) licences will be granted in rural areas, except for 3-star or higher hotels and clubs located in industrial zones.
Under the new policy, the government has directed the modernisation of Out-Still (OS) manufacturing units.
Units are required to adopt advanced packaging and quality control machinery, with FSSAI certification and compliance with Pollution Control Board norms becoming mandatory.
Incentives will be provided to units that complete these upgrades within the stipulated timeline.
Under the new policy, to combat illicit trade and ensure transparency, a digital 'Track & Trace' system will be implemented to monitor every bottle from production to the point of sale.
The government also mandated that all manufacturing units and retail outlets must be under CCTV surveillance, with CCTV feeds directly linked to the Excise Commissioner's office and respective District offices. Similarly, the state excise chemical laboratories will be bolstered with modern technology and trained personnel to ensure rigorous testing of products.