Madhya Pradesh Introduces E-Tender for Liquor Shops in New Policy

The Madhya Pradesh government has finalized the framework for its new excise policy for the financial year 2026-27. Once implemented, alcohol prices are expected to rise from April 1. The policy aims to increase state revenue, with the excise department assigned a revenue target of ₹19,000 crore for the next fiscal year, which is ₹3,000 crore higher than last year. This additional revenue will support public welfare schemes like Laadli Bahna.

The 3,553 liquor shops in the state will be auctioned through a single e-tender process. Shops will have a reserve price set and will be auctioned at 20% higher value. The government has clarified that no new liquor shops will be allowed to open in the state. The High Empowered Committee has approved the draft policy, which will be presented to the cabinet after final approval by Chief Minister Mohan Yadav.

Stricter Measures After Indore Liquor Scam

Following lessons from a ₹100 crore liquor scam in Indore, the government has implemented stricter measures. The Enforcement Directorate (ED) is currently investigating the scam, which involved illegal removal of liquor using fake invoices. Now, only e-invoices and e-bank guarantees will be accepted for collecting goods from liquor warehouses.