No New Liquor Shops, Higher Fees: Odisha’s New Excise Policy

The Odisha government has announced its new excise policy effective from April 1, 2026. The policy, presented by Excise Minister Prithviraj Harichandan, focuses on controlled expansion, higher revenue, and social responsibility.

What’s Changing?

Licence Fees Go Up
If someone is in the liquor business, expect higher costs.

• Application fees will increase by 10%
• Annual licence fees will rise by 10%–20%

This means higher entry and operating costs for vendors.

Big Shift in Revenue Model
The government is changing how it earns from liquor sales.

• Old system: Minimum Guaranteed Quantity (MGQ)
• New system: Minimum Guaranteed Excise Revenue (MGER)

 In simple words, Vendors won’t be forced to sell more alcohol just to meet targets. Instead, the focus shifts to ensuring stable revenue for the state.

No New Liqour Shops 

The government has also decided to restrict the expansion of liquor outlets. No new ‘off’ shops will be allowed across the state, while new ‘on’ shops will not be permitted in rural areas. However, limited exemptions have been provided for clubs in industrial zones and hotels with three-star and above ratings.

Policy Outlook: A Shift Towards Responsible Regulation

Overall, the new excise policy marks a significant shift in the approach of the Odisha government—from a sales-driven model to a more regulated and responsibility-focused system. With higher licence fees, a dedicated 0.5% de-addiction cess, and strict limits on new liquor outlets, the policy aims to balance revenue generation with public health concerns.

While the changes may increase operational costs for businesses, the larger goal is to ensure controlled growth of the liquor trade and promote a healthier social environment across the state.