Odisha Government Introduces New Excise Policy with Focus on De-Addiction

The Odisha government has introduced a new excise policy that emphasizes de-addiction and revenue restructuring. Effective from April 2026, the policy includes a 0.5% 'De-Addiction Cess' on excise duties, increased licensing fees, and a ban on home delivery of liquor. The initiative aims to curb alcohol-related issues while ensuring government revenue stability. With a focus on modernization and compliance, the policy also restricts new liquor shops near religious sites, reflecting a commitment to cultural sensitivities. This comprehensive approach seeks to promote responsible alcohol consumption across the state.

By Narendra Chaudhary Mar 26, 2026, 18:36 IST

New Excise Policy Launched in Odisha

Bhubaneswar: On Thursday, the Odisha government announced a fresh excise policy that includes a 'de-addiction' cess, an increase in licensing fees, and a revamped revenue structure.

During the announcement in the Odisha Assembly, Excise Minister Prithiviraj Harichandan stated that this policy will be effective for three years, starting from April 1, 2026, until March 31, 2029.

The new policy emphasizes raising licensing fees and restructuring the revenue collection process.

The minister highlighted that the policy acknowledges alcohol consumption as a detrimental habit, introducing a 0.5% 'De-Addiction Cess' on excise duties.

Revenue generated from this cess will be dedicated solely to establishing and operating model de-addiction centers throughout the state.

According to the new regulations, application fees for excise licenses will increase by 10%, while license fees will rise annually by 10% to 20%.

Additionally, excise duties on Indian Made Foreign Liquor (IMFL) and country liquor have been elevated. The policy replaces the Minimum Guaranteed Quantity (MGQ) system with the Minimum Guaranteed Excise Revenue (MGER) model, aimed at protecting government revenue while alleviating pressure on traders to boost sales volumes.

This new model is anticipated to reduce unethical practices such as forced sales, the minister noted, and it requires the modernization of out-still (OS) production facilities, including enhanced packaging and quality control equipment.

Compliance with Food Safety and Standards Authority of India (FSSAI) certifications and pollution control regulations is now mandatory, with incentives available for units that complete modernization within set timelines.

To improve transparency and combat illegal trade, the government will implement a track and trace system to monitor the movement of extra neutral alcohol (ENA), tracking each bottle from production to sale. CCTV surveillance will be installed in all production facilities and retail outlets, linked to the Excise Commissioner's office and district authorities.

The government has also decided against permitting any new 'off' shops in the state, and no new 'on' shops will be allowed in rural areas. However, a limited exception has been made for three-star hotels and above, as well as clubs in industrial zones.

The minister emphasized that no excise shops will be allowed near the Shree Jagannath Temple on the Grand Road in Puri, respecting religious and cultural sentiments.

Home delivery of liquor has been entirely prohibited as part of efforts to strictly control the spread of addiction.

Furthermore, excise duties on both Indian-made foreign liquor (IMFL) and country liquor have been increased under this new policy framework.