Bhubaneswar: The Odisha government on Thursday unveiled new Excise Policy for 2026–2029, introducing a three-year framework effective from April 1, 2026, to March 31, 2029. 

The shift from an annual to a triennial policy is aimed at ensuring greater stability, consistency, and transparency in the excise sector. The policy will remain in force until a new framework is introduced, with provisions for necessary modifications.

No new liquor outlets; ban near Puri Jagannath Temple and Bada Danda

A major highlight of the policy is the decision not to permit any new liquor shops across the state. This includes restrictions on opening new OFF, country liquor (CL), and out-still (OS) outlets, as well as no approvals for new ON shops in rural areas. Limited relaxation has been provided only for three-star and above hotels and clubs in industrial zones.

In a significant move respecting religious sentiments, the government has prohibited the operation of any liquor shops near the Shree Jagannath Temple and along the Bada Danda in Puri. Additionally, home delivery of liquor will not be allowed under the new policy.

De-addiction cess introduced; stricter monitoring through Track & Trace

To address public health concerns, a 0.5% de-addiction cess has been imposed on excise duty, recognising alcohol as a harmful substance. The revenue generated from this cess will be utilised to establish and strengthen de-addiction centres across the state.

On the revenue front, the government has increased application fees for excise licences by 10%, while licence fees will see an annual hike ranging from 10% to 20%. Excise duties on Indian Made Foreign Liquor (IMFL) and country liquor have also been raised. The policy replaces the Minimum Guaranteed Quantity (MGQ) system with the Minimum Guaranteed Excise Revenue (MGER) model to safeguard government revenue and reduce pressure on traders to push sales volumes. This is also expected to curb unethical practices like forced sales.

The policy mandates modernisation of out-still (OS) production units, including improved packaging and installation of quality control equipment. Compliance with Food Safety and Standards Authority of India (FSSAI) certification and pollution control norms has been made compulsory. Incentives will be provided to units completing modernisation within stipulated timelines.

To enhance transparency and curb illegal trade, the government will implement a Track & Trace system to monitor Extra Neutral Alcohol (ENA) movement and track each bottle from production to sale. CCTV surveillance will be installed across all production units and retail outlets, integrated with the Excise Commissioner’s office and district authorities.

Further, the policy aims to strengthen state excise chemical laboratories with advanced technology and skilled manpower to ensure better quality checks and enforcement.

The government stated that the comprehensive policy balances revenue generation with regulatory control, public health priorities, and technological integration, marking a significant reform in Odisha’s excise administration.

Reaction of Excise Minister Prithiviraj Harichandan on New Excise Policy 

The excise policy will be made stricter, with enhanced enforcement. As a major change, a three-year policy has been introduced instead of the earlier annual system. This will help bring clarity and predictability in revenue collection, while giving a clear direction to the policy.

Earlier, quantity-based targets were leading to the opening of illegal liquor outlets. This has now been replaced with the MGER (Minimum Guaranteed Excise Revenue) system, where revenue targets are fixed instead of sales volume. Traders will lift stock based on actual demand, which will help curb illegal practices like “kuchia” (unauthorised) sales. States that have implemented MGER have seen improved revenue performance.

Highlighting the key points in the policy, he said, "No new liquor shops will be allowed to open during this three-year period. Additionally, 0.5% of excise revenue has been earmarked as a de-addiction cess. This fund will be used for awareness programmes and to establish model de-addiction centres.

Liquor shops will not be permitted along Puri’s Bada Danda or in the vicinity of the Shree Jagannath Temple. Strict action, including arrest, will be taken against violators.

There have also been instances of rooms being illegally provided near off-shops for liquor consumption. To curb this, installation of CCTV cameras will be made mandatory.

Home delivery of liquor has been completely banned. These measures are aimed at putting a firm check on the spread of addiction."