Odisha Launches Comprehensive Excise Policy for 2026–29 Emphasizing Revenue, Safety, and Social Welfare
Synopsis
Key Takeaways
Bhubaneswar, March 26 (NationPress) The Government of Odisha has unveiled its latest triennial Excise Policy, which will take effect from April 1, 2026, until March 31, 2029.
Transitioning from an annual framework, the state's excise department aims to enhance stability, uniformity, and transparency in the management of the liquor sector.
In a notable social initiative, this new policy respects religious and cultural sentiments by prohibiting liquor shops in proximity to the Shree Jagannath Temple and Grand Road (Badadanda) in Puri.
Moreover, the triennial excise policy explicitly bans the home delivery of liquor. To address the detrimental effects of alcohol consumption, the government has introduced a 0.5% De-Addiction Cess on excise duty, with the revenue generated allocated solely for the development of model de-addiction centres throughout the state.
A significant change in the policy is the shift from the Minimum Guaranteed Quantity (MGQ) system to a Minimum Guaranteed Excise Revenue (MGER) framework. This change is intended to safeguard state revenue while alleviating pressure on vendors to aggressively pursue sales quotas, thus curtailing unhealthy trading practices.
The government has also increased application fees for various excise licences by 10%, with annual hikes in licence fees ranging from 10% to 20% each year.
Additionally, duties on both Indian Made Foreign Liquor (IMFL) and Country Liquor (CL) have been raised under the new policy.
The state has decided that no new ‘OFF’ shops, Country Liquor (CL) shops, or Out-Still (OS) shops will be permitted to open anywhere in Odisha. Furthermore, no new ‘ON’ (bar) licences will be issued in rural areas, except for 3-star or higher hotels and clubs situated in industrial zones.
To modernize the sector, the government has mandated the upgrading of Out-Still (OS) manufacturing units.
These units are required to implement advanced packaging and quality control systems, with FSSAI certification and compliance with Pollution Control Board regulations becoming essential.
Incentives will be provided to units that complete these upgrades within the designated timeframe.
To combat illegal trade and promote transparency, a digital 'Track & Trace' system will be established to monitor every bottle from production to sale.
Moreover, all manufacturing facilities and retail outlets must be under CCTV surveillance, with the footage directly linked to the Excise Commissioner’s office and respective district offices. Similarly, state excise chemical laboratories will be equipped with modern technology and trained personnel to ensure thorough testing of products.