Odisha's New Excise Policy Introduces Super-Premium Liquor Stores in Shopping Malls
Starting April 1, residents of Odisha will experience a significant transformation in their liquor purchasing options. The state government has unveiled a new three-year excise policy that permits the establishment of super-premium, air-conditioned liquor outlets within shopping malls and prime urban locations. These stores must be at least 4,000 square feet in size, marking a departure from traditional liquor retail setups.
Key Features of the Policy
The policy, the first under the Mohan Charan Majhi government, aims to provide continuity and predictability in the excise sector. It extends the 2023-24 framework until March 31, 2025, and introduces several innovative measures:
- Super Premium FL OFF Shops: These high-end outlets will be allowed only in municipal corporation areas of Bhubaneswar, Cuttack, Puri, Rourkela, Sambalpur, and Berhampur.
- Licensing Fees: Applicants must pay a non-refundable fee of Rs 5 lakh, with renewal for 2027-28 costing Rs 3 lakh and a 10% annual increase thereafter. Each outlet requires an annual licence fee of Rs 50 lakh, also subject to a 10% yearly escalation.
- Wine-Tasting Rooms: An additional fee of Rs 50,000 per year will be charged for wine-tasting facilities within these stores.
Price Increases and New Taxes
While the shopping experience is set to upgrade, consumers will face higher costs. The government has imposed a new de-addiction cess and increased excise duties and import fees across various categories. Industry insiders predict retail prices for Indian-made foreign liquor (IMFL) could rise by 10% to 15%. Specific changes include:
- Import fee increased from Rs 15 to Rs 50 per litre of spirit at 50% alcohol strength.
- Duty on mild beer raised from Rs 45 to Rs 55 per litre, potentially adding Rs 5 to Rs 12 to a 650ml bottle.
- Imported premium whisky and rum may see steeper jumps of Rs 150 to Rs 300 per bottle.
Regulatory and Safety Measures
Excise Minister Prithiviraj Harichandan emphasized that safety and quality are central to the new policy. Key initiatives include:
- Track & Trace System: A digital monitoring system will track liquor movement from distilleries to retail shops, aiming to curb illicit trade and ensure quality. This system will also monitor extra neutral alcohol (ENA), the base for IMFL and country liquor.
- CCTV Coverage: Mandatory surveillance will be implemented across the supply chain, with all manufacturing units and shops linked to excise commissioner and district offices.
- Digital Payments: All liquor shops will offer digital payment options to enhance convenience and transparency.
De-addiction and Revenue Focus
The policy introduces a 0.5% de-addiction cess on the excise duty value of all beverages sold through the Odisha State Beverages Corporation. This cess will contribute to a Rs 100 crore fund dedicated to anti-alcoholism and drug de-addiction campaigns. Additionally, the state has replaced the minimum guaranteed quantity (MGQ) rule with a minimum guaranteed excise revenue (MGER) system, ensuring government revenue regardless of liquor lift quantities.
Religious Sensitivities in Puri
Recognizing Puri as a sacred area, the policy explicitly prohibits liquor shops near the Jagannath Temple, on Badadanda, or in beach shacks within Puri municipal limits. While no such outlets currently exist on Badadanda, the government has formally reiterated this ban to address religious sensitivities.
This comprehensive excise policy represents a bold step by the Odisha government to modernize liquor retail while balancing consumer experience with public health and revenue objectives. The changes are poised to reshape the state's beverage industry landscape over the next three years.
