Madhya Pradesh's Bold Liquor Trade Strategy: A Bid for National Market Access
In a groundbreaking move, the Madhya Pradesh government is set to revolutionize the state's liquor market by promoting exclusive heritage brands from neighboring states. This strategic initiative is designed to create reciprocal trade opportunities, allowing MP's own indigenous Mahua-based liquor, branded as 'Mond', to expand its footprint beyond state lines.
Reciprocal Promotion: A Win-Win for Heritage Liquors
The newly drafted Madhya Pradesh Excise Policy for the fiscal year 2026-27 includes a pioneering provision to aggressively market heritage liquors from other states. This promotion will focus on spirits made from unique, region-specific ingredients, such as cashew-based liquors from Goa or Kesar Kasturi from Rajasthan. In exchange, MP seeks similar promotional efforts and trade concessions for its Mahua-based 'Mond' brand in those states.
The policy explicitly states: "If any other state offers duty exemptions or tax relief to promote a specific liquor made from a local product—like Mahua in MP or cashew in Goa—then MP may grant similar exemptions to that state's heritage liquor, provided reciprocal benefits are extended to MP's heritage liquor."
Targeted Brands and Conditional Benefits
Should this market strategy gain traction with other states and stakeholders, liquor stores across Madhya Pradesh could soon feature a diverse array of heritage brands. Potential inclusions are:
- Feni from Goa
- Lugdi and Chulli from Himachal Pradesh
- Tharra from Punjab and Haryana
- Chaang and Tongba from Sikkim and Ladakh
- Toddy from Kerala
However, the policy emphasizes that trade exemptions will not be blanket approvals. Each case will be evaluated individually by the state government, ensuring a tailored approach to promotions and duty cuts.
Reviving 'Mond': A Response to Market Challenges
This innovative strategy stems from the underwhelming performance of MP's heritage Mahua liquor, 'Mond', launched three years ago. Despite aggressive promotions at bars, liquor shops, and tourism outlets, the brand struggled with lukewarm consumer response and limited visibility. Excise department officials revealed that the new policy aims to give 'Mond' a renewed push while fostering cross-state heritage liquor trade.
Officials noted: "Some neighboring states have already adopted similar strategies to market their liquor brands. This move could gain momentum if other states show interest in promoting MP's 'Mond'."
Background and Tribal Empowerment
The Mahua-based liquor initiative is deeply rooted in tribal empowerment. In August 2022, the government approved mass production of 'Mond', followed by the notification of MP heritage liquor rules in January 2023. Two self-help groups in Dindori and Alirajpur received exemptions for Mahua production, with support from the government in setting up units and training from a Pune-based institute.
Pre-launch efforts included free samples in bars through MP tourism initiatives, but these failed to attract significant interest from liquor enthusiasts. The new excise policy represents a strategic pivot to overcome these challenges through interstate collaboration.
The state is expected to issue an official notification soon, formalizing this reciprocal promotion framework and potentially reshaping the landscape of heritage liquor trade in India.
