Madhya Pradesh's New Liquor Policy: Transforming Tribal Regions into Smuggling Corridors

On April 14, 2025, Madhya Pradesh's new liquor policy allocated liquor shops in tribal areas along the Gujarat border, effectively turning them into unannounced smuggling corridors. The policy has raised concerns among local representatives and tribal communities.

Key Highlights:

• Tribal Areas Affected: Jhabua and Alirajpur districts.
• Shop Allocations: Seven groups assigned shops along the Gujarat border, ranging from 500 meters to 5 kilometers from the border.
• High Auction Prices: Bids for shops reached up to ₹16 crore, despite villages having populations between 1,500 and 5,000, with a significant portion below the poverty line (BPL).
• Example: In Mandli village, with a population of 2,500 and 1,250 BPL residents, an English liquor shop was auctioned for ₹13 crore. Even if 50% of the population consumes alcohol, each person would need to spend ₹1 lakh annually to cover the cost, indicating a focus on potential smuggling rather than local consumption.

Concerns Raised:

• Local Representatives' Opposition: They argue that the policy legitimizes smuggling routes and leads tribal communities towards social degradation.
• Impact on Tribal Society: The allocation of entire corridors to single groups raises questions about the intent behind the policy.

Financial Implications:

• Revenue Generation: In 2024-25, Jhabua earned ₹287 crore, and Alirajpur ₹117 crore from liquor sales, indicating a significant increase in revenue compared to previous years.
• Government's Stance: The government claims the policy aims to regulate alcohol consumption and promote tourism, but critics view it as a step towards legitimizing illegal activities.