Bhubaneswar: The Odisha government will hold a lottery in April for the allotment of liquor shops as part of its newly announced three-year Excise Policy for 2026–29, signalling a shift towards transparency and tighter regulation.
Speaking to the media, Law Minister Prithiviraj Harichandan said that the five-year licence for off shops and country liquor (CL) shops expires on March 31. “The lottery was delayed as the new policy was not enforced. Arrangements will be made to begin the process by April. It will be conducted in the presence and supervision of the district collectors to ensure fairness and accountability. As far as possible, an electronic lottery system will be implemented to further minimise the risk of irregularities and streamline the entire procedure,” he said.
The new excise policy allows super-premium, air-conditioned liquor outlets spanning at least 4,000 square feet in shopping malls and prime city locations. These newly introduced Super Premium FL OFF shops will be restricted to municipal corporation areas in Bhubaneswar, Cuttack, Puri, Rourkela, Sambalpur, and Berhampur.
However, no new off, country liquor or out-still shops will be permitted across the state in the next three years. New on-shops will also not be allowed to be opened in rural areas.
The Minister clarified that hotels with a three-star rating and above, which have bar facilities, and clubs in industrial areas, will be granted on-shop permissions. “No sub-counters will be allowed,” he added.
Other Key Features of Odisha’s New Excise Policy
Alcohol to Become More Expensive:
The government has significantly hiked excise duty on most categories of liquor starting next month.
Major Duty Hike on IMFL
Ad valorem excise duty on Indian-made whisky, gin, rum, brandy, vodka, and other liqueurs increased from 55% to 65%.
The same 65% rate now also applies to imported-in-bulk and bottled-in-India versions of these spirits.
No Change in Certain Categories
Excise duty on beer remains unchanged. Excise duty on imported foreign liquor (whisky, gin, rum, brandy, vodka, etc.) stays at 25%.
Country Liquor (CL) Duty Increased
Excise duty on country liquor raised from 40% to 50% for all suppliers except Aska Cooperative Sugar Industries Limited (ACSIL), whose rate remains unchanged.
New 0.5% De-Addiction Cess Introduced
A 0.5% cess will be levied on excise duty. Revenue from this cess will be used exclusively for setting up and strengthening model de-addiction centres across the state.
No Shops Near Sacred Sites
Reflecting sensitivity to religious sentiments, no excise shops will be permitted in the vicinity of Shree Jagannath Temple or along the Grand Road in Puri. Home delivery of liquor is also prohibited.
Increased Fees
Application fee for various excise licences hiked by 10%.
Annual licence fee increased by 10% to 20% every year.
Major Structural Reform
A new Minimum Guaranteed Excise Revenue (MGER) system has been introduced to protect government revenue while reducing pressure on traders to push sales through discounted/cheap liquor.
Advanced Monitoring & Transparency
A ‘Track and Trace’ system for Extra Neutral Alcohol (ENA) with bottle-level tracking from production to retail.
All production units and retail outlets will be brought under CCTV surveillance, with live feeds connected to the Excise Commissioner’s office and district authorities.
Modernisation of Out-Still (OS) Units
Out-still manufacturing units must modernise, install advanced packaging and quality control equipment.
Mandatory compliance with FSSAI and pollution control norms.
Incentives will be provided to units that complete modernisation on time.
