The cost of liquor ban: MP expects an annual revenue loss of less than 2%

The Madhya Pradesh government expects a marginal annual revenue loss of less than 2 per cent due to its decision to ban liquor sales in 19 locations, including 17 of religious significance, from April 1. 

The locations where liquor shops will be shut include Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Amarkantak, and Salkanpur.

  According to a senior Madhya Pradesh government official, the state is projected to earn around ₹15,000 crore in revenue from liquor sales through composite shops in FY25. “Based on our assessment, the impact on revenue due to the liquor ban won’t be more than 2 per cent,” the official stated.

  Under the new policy, liquor sales have been banned in certain areas, but ‘low-alcoholic beverage bars’ have been permitted for the first time in the state. These bars will allow the sale and consumption of only beer, wine, and ready-to-drink alcoholic beverages with a maximum alcohol content of 10 per cent by volume. However, the sale of spirits will be prohibited.

  The ban on the sale of spirits in 19 locations will impact 47 composite liquor outlets. These composite shops, which sell both Indian Made Foreign Liquor (IMFL) and country liquor, will be among those closed.

  The liquor ban comes a few years ahead of the ‘Simhastha’ bathing festival in Ujjain, home to the ‘Mahakaal Temple’, scheduled to take place in 2028.

  Taking inspiration from the recently concluded ‘Mahakumbh Mela’ in Prayagraj, sources said the state plans to build a mega temporary city along the banks of the Shipra River, equipped with modern facilities for devotees. Ujjain is also the home district of Chief Minister Mohan Yadav.

  Sources added that after the construction of the theme-inspired ‘Mahakaal Lok’ a few years ago, the annual footfall of devotees and tourists increased from 10 million to 50 million.'