The Odisha Government has unveiled a new triennial Excise Policy set to be in force from April 1, 2026, to March 31, 2029. This shift from an annual to a three-year policy aims to bring stability, consistency, and transparency to the state’s excise sector. Notably, liquor outlets will be prohibited from operating near the Shree Jagannath Temple and Grand Road in Puri under this new policy.
In a bid to address social concerns, the triennial excise policy also prohibits the home delivery of alcohol. Additionally, a 0.5% De-Addiction Cess on excise duty has been introduced to acknowledge the adverse effects of alcohol consumption. The revenue generated from this cess will be dedicated to establishing and strengthening de-addiction centers across Odisha.
Under the new policy, a shift from the Minimum Guaranteed Quantity (MGQ) system to a Minimum Guaranteed Excise Revenue (MGER) model has been implemented. This change is aimed at safeguarding state revenue while alleviating the pressure on vendors to meet sales quotas, thereby discouraging unhealthy trade practices. Moreover, application fees for various excise licenses have been raised by 10%, accompanied by annual increases in license fees ranging from 10% to 20% each year.
The state government has announced an increase in duties on both Indian Made Foreign Liquor (IMFL) and Country Liquor (CL) as part of the new policy. Furthermore, the establishment of new ‘OFF’ shops, Country Liquor (CL) shops, or Out-Still (OS) shops anywhere in Odisha has been prohibited. ‘ON’ (bar) licenses will only be granted to 3-star or higher hotels and clubs in industrial zones, excluding rural areas.
To enhance transparency and combat illicit trade, a digital ‘Track & Trace’ system will be implemented to monitor each bottle from production to sale. Manufacturing units and retail outlets will be required to have CCTV surveillance, with feeds directly linked to the Excise Commissioner’s office and District offices. Additionally, modernization of Out-Still (OS) manufacturing units with advanced packaging and quality control machinery is mandated, alongside compliance with FSSAI certification and Pollution Control Board norms.
