Alcohol Prices to Rise Sharply in Maharashtra as State Approves Major Excise Duty Hike
Mumbai, 11th June 2025: In a significant policy move aimed at boosting state revenue, the Maharashtra cabinet has approved a steep hike in excise duties on alcoholic beverages. This decision will cause prices of both ordinary and premium liquor brands to surge, with a quarter bottle (180 ml) of regular Indian-made foreign liquor (IMFL) like whisky or rum now set to cost between ₹90 to ₹100 more than the current price of ₹115 — marking a hike of approximately 78-85%.
Premium IMFL labels will also see price increases, though to a lesser extent. A 180 ml bottle, currently priced at ₹330, is expected to cost ₹30-40 more — a 9-12% rise.
Country liquor not spared either
The new policy also increases the excise duty on country liquor, raising the rate from ₹180 to ₹205 per proof litre. This change will translate to a minimum ₹10-15 increase in the retail price of a 180 ml bottle.
An official from the state excise department stated, “This comprehensive revision is expected to bring in an additional ₹14,000 crore annually. The funds will be used to support government schemes and social welfare commitments, including the Ladki Bahin monthly allowance scheme.”
Maharashtra-Made Liquor introduced
In another notable move, the cabinet approved the creation of a new category of liquor — Maharashtra-Made Liquor (MML) — which will be a grain-based IMFL. MML is expected to retail at around ₹150 for a 180 ml bottle and ₹625 for a full 750 ml bottle, providing an alternative option in the mid-range liquor market.
Permit room licences and retail operations to get costlier
The cost of operating liquor businesses is also set to rise. The cabinet approved a hike in licence fees for both sealed liquor retail shops (FL-2) and permit rooms in hotels and restaurants (FL-3). These licences will now be issued under a lease-based (conducting) model, with added fees of 15% and 10% respectively over the annual licence charges.
Technology-led enforcement, staffing overhaul
To bolster regulatory control, the excise department will undergo a major revamp. A new AI-powered integrated control room will monitor distilleries, bottling plants, wholesalers, and retailers in real-time.
A senior government source said, “This system will enable more effective oversight and help reduce revenue leakage through better compliance tracking.”
The cabinet also greenlit the creation of 1,223 new positions in the excise department, including 744 fresh posts and 479 supervisory roles, to support the modernized structure. Additional superintendent offices will be established in key districts including Mumbai suburbs, Thane, Pune, Nashik, Nagpur, and Ahilyanagar, and a new divisional office will be set up for Mumbai city and suburbs.
Why the hike now?
The move comes as the state seeks new revenue streams to fund welfare schemes and fulfill pre-election promises. Chief Minister Devendra Fadnavis, who chaired the cabinet meeting, had earlier formed a study group of senior officials to examine ways to enhance excise revenue. The group reviewed taxation models from other states and recommended the current changes.
