Maharashtra Clears State-Exclusive Grain Liquor Category

  • Mumbai Live Team
  • Civic

A policy allowing grain-based liquor production has been approved by the Maharashtra government, and the reopening of closed or underutilised potable liquor licensee (PLL) units has been authorised so that full capacity may be used. The decision was formalised through a Thursday order from the state excise department. Under the same order, a new category titled Maharashtra Made Liquor (MML) has been introduced alongside the existing IML and IMFL segments. It has been specified that MML is to be produced only within Maharashtra and that the brand is to remain exclusive to the state.

The measure has been framed as a revenue-augmentation step. Additional receipts of up to ₹3,000 crore have been projected by officials, while the state’s debt for FY 2025–26 has been estimated at ₹9.32 lakh crore. The timing has been linked to fiscal pressures associated with welfare programmes, including the Ladki Bahin Yojana, that are expected to require sustained funding. Prior groundwork for the policy was laid by a committee that was constituted in January under the Devendra Fadnavis-led administration and chaired by then additional chief secretary Valsa Nair. Its report was submitted in April and was cleared by the cabinet on June 10.

Under pricing and strength norms, grain-based MML is to be offered at not less than ₹148 for a 180 ml pack, with the threshold positioned to narrow the gap between country liquor and IMFL. Alcoholic strength has been limited to 42.8% v/v (25 under proof), while vodka and gin under the MML label have been permitted within a band of 37.5% to 42.8% v/v (35 to 25 under proof). Exclusivity provisions have been emphasised: production of MML outside Maharashtra has been prohibited, and relabelling under other categories—such as country liquor, IMFL, beer or wine—has been disallowed. A requirement that the PLL licensee’s registered head office be located in Maharashtra has also been included.

Eligibility screens have been tightened. Foreign investment—direct or indirect—has been barred for PLL licensee companies seeking an MML licence. It has been mandated that at least 25% of promoters or licence holders be permanent residents of Maharashtra. Entities that manufacture IMFL both inside Maharashtra and in other states have been rendered ineligible for MML. Brand ownership conditions have been narrowed to self-owned brands only, and labelling rules have been prescribed: the phrase “For Sale In Maharashtra State Only” together with the MML logo must appear on products sold in-state, while the logo must also be printed on labels meant for export.

Industrial implications have been highlighted for 70 PLL units across the state. Of these, 22 have been lying defunct, 16 have not been manufacturing but have been renewing licences to retain retail permissions, and 32 have remained active producers. Within the active cohort, 10 units have been responsible for 70% of Maharashtra’s IMFL output, and a boost to capacity utilisation has been anticipated. The current chapter has been contrasted with a 2007 initiative to encourage grain-based distilleries, which was curtailed after objections by activists over food-grain diversion, observations by the Comptroller and Auditor General, and a June 2010 Bombay High Court stay on disbursements of roughly ₹50 crore each to 23 licensees.

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