Mumbai, August 9: The Maharashtra government approved the manufacturing of grain-based liquor in the state for the first time. The move comes as the cash-strapped state attempts to revamp the economy by generating additional revenue and to revive underutilised liquor manufacturing units.

The state excise department issued a formal order on Thursday, August 7, introducing a new liquor category called Maharashtra Made Liquor (MML). Facing a projected debt of INR 9.32 lakh crore for FY 2025–26, the state government expects this move to bring in up to INR 3,000 crore in additional revenue. Maharashtra Liquor Price Hike: Alcohol To Get Costlier As State Govt Hikes Excise Duty, Introduces New Category 'Maharashtra Made Liquor'; Check Revised Retail Prices Here.

What is Maharashtra Made Liquor (MML)?

MML is a new category of grain-based potable liquor, set to be exclusively produced and sold in Maharashtra. It will be distinct from existing categories like Indian Made Liquor (IML) and Indian Made Foreign Liquor (IMFL). MML is intended to offer a more affordable alternative to IMFL while maintaining higher quality than traditional country liquor.

The state will restrict the manufacturing of MML to within Maharashtra, and only self-owned brands will be eligible. No third-party brand manufacturing will be permitted. All bottles sold in the state will carry the “For Sale in Maharashtra State Only” label along with the MML logo. Maharashtra Bandh Today: Over 20,000 Bars and Permit Rooms Across State To Stay Shut In 'No Alcohol' Protest Against Excise Duty Hike.

Excise Duty Comparison Between MML and IMFL

The excise duty on MML will be 270%, significantly lower than the 450% levied on IMFL, making MML a more attractive and affordable option for consumers.

Officials estimate a potential price difference of INR 700 per litre between MML and IMFL. For example, a liquor product with a manufacturing cost of INR 400 may cost INR 2,200 as IMFL, but just INR 1,480 as MML, due to lower tax rates.

Eligibility and Licensing Rules

  • The manufacturer's registered head office must be in Maharashtra.

  • At least 25% of promoters must be permanent residents of Maharashtra.

  • No foreign direct investment is allowed.

  • Companies producing Maharashtra-branded IMFL outside the state will not be eligible for an MML licence.

With MML, Maharashtra Aims to Revive Underutilised Liquor Units

Out of Maharashtra’s 70 PLL units, 22 are defunct and 16 are inactive, only holding licences. Just 32 are functional, with 10 producing 70% of the state’s IMFL. The MML policy is expected to revive these units, create jobs, and boost local production.

Not the First Time..

This is not the first time Maharashtra has attempted grain-based liquor production. A 2007 scheme under the Vilasrao Deshmukh-led government promoted food grain-based distilleries, but it faced backlash due to concerns about using food grains for alcohol in a state grappling with malnutrition and drought. In 2010, the Bombay High Court stayed fund disbursements under that scheme, and the CAG flagged irregularities, causing the initiative to stall.

The new MML policy is based on recommendations from a committee headed by the then Additional Chief Secretary Valsa Nair, formed in January 2024. The committee submitted its report in April, and the cabinet approved it on June 10.

(The above story first appeared on LatestLY on Aug 09, 2025 03:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).