Daijiworld Media Network – Chhatrapati Sambhajinagar

Chhatrapati Sambhajinagar, Aug 9: The Maharashtra home department on Thursday issued a government resolution (GR) outlining operational guidelines for the production of ‘Maharashtra Made Liquor’ (MML), a newly introduced category of grain-based liquor. The move follows the state cabinet’s June 10 approval to include MML in the Bombay Foreign Liquor Rules, 1953.

The state government recently hiked excise duty on Indian-made Foreign Liquor (IMFL) from 300% to 450% of manufacturing cost, while MML will attract a lower 270% excise duty. According to excise officials, this reduced tax rate is expected to benefit existing local manufacturers, revive non-operational units, generate employment, and make quality liquor available at lower prices.

Industry sources estimate that the price difference between IMFL and MML could be around Rs 700 per litre. For instance, with a manufacturing cost of Rs 400 per litre, IMFL would cost around Rs 2,200 including Rs 1,800 excise duty, while MML would cost about Rs 1,480 with Rs 1,080 excise duty.

The GR specifies that MML will be treated as a distinct type of IMFL and must be manufactured only using rectified spirit produced within Maharashtra. Licence eligibility criteria include having the registered head office in the state, with at least 25% shareholding by state residents. Manufacturers must also not produce Maharashtra-branded IMFL in other states.

Maharashtra currently has 48 IMFL manufacturing units, of which 10 control 90% of the market, while the remaining 35–38 units operate at minimal capacity to retain their licences. Excise officials say the MML category is aimed at helping these under-utilised units re-enter the market.

Additional conditions will apply to units operating under lease or tie-up arrangements, ensuring compliance with the state’s production and ownership norms.