Odisha introduces new excise policy; no liquor shops around Jagannath Temple

Under this policy, no excise shops will be allowed to operate in the vicinity of the 12th century Jagannath Temple or along the Grand Road

The Odisha government on Thursday introduced a triennial excise policy for the period April 1, 2026, to March 31, 2029, replacing the earlier system of annual policies.

The policy imposes strict curbs on the expansion of liquor outlets. (Jagganath Tempple website)

Under this policy, no excise shops will be allowed to operate in the vicinity of the 12th century Jagannath Temple or along the Grand Road, the 2.6 km stretch connecting the main shrine to the Gundicha Temple in Puri.

Though no excise shops are currently operational in that zone, a few official shops selling bhang (finely ground cannabis leaves made into paste) are located in the area.

The new framework replaces the earlier annual excise policy with a three-year structure, a shift officials said is intended to bring greater predictability and transparency to the sector while allowing scope for mid-course corrections if required.

Among key public health interventions, the government has introduced a 0.5 per cent de-addiction cess on excise duty.

The policy also proposes an upward revision in licensing costs. Application fees for various excise licences will increase by 10 per cent, while licence fees will rise annually by 10 to 20 per cent. Excise duty on Indian Made Foreign Liquor (IMFL) and country liquor (CL) has also been enhanced.

The state has also replaced the Minimum Guaranteed Quantity (MGQ) system with a Minimum Guaranteed Excise Revenue (MGER) model.

Officials said the move is expected to protect government revenues while reducing pressure on vendors to push higher sales volumes merely to meet quantity targets.

The policy imposes strict curbs on the expansion of liquor outlets. No new OFF, country liquor or out-still shops will be permitted across the state.

In rural areas, opening of new ON shops has been barred, except within three-star and above hotels and clubs located in industrial zones. The policy also explicitly rules out home delivery of liquor.

To strengthen monitoring and curb leakages, the government will introduce a Track and Trace system to monitor the movement of Extra Neutral Alcohol (ENA) and enable bottle-level tracking from production to retail sale. All production units and retail outlets will be brought under CCTV surveillance, with live feeds linked to the office of the Excise Commissioner and district authorities.

Further, the state’s excise chemical laboratories will be upgraded with modern equipment and trained personnel to enhance testing capacity and ensure stricter quality oversight.

Officials said the transition to a triennial policy format is aimed at balancing revenue growth with regulatory discipline and public health safeguards.

Excise revenue in Odisha has recorded significant growth over the past two and half decades, rising from ₹135.35 crore in 2000–01 to ₹11,429.74 crore in 2024–25.