Maharashtra Clears Decks For New Grain-Based Liquor Category To Rival Molasses-Based Producers

Mumbai: The Mahayuti government has cleared the decks for its new Maharashtra Made Liquor (MML) policy, designed exclusively for state based players operating grain-based production units. The MML category, tagged alongside the Indian Made Foreign Liquor (IMFL) variant, is expected to challenge molasses-based manufacturers within Maharashtra and rivals from other states.

Currently, Maharashtra has 40 grain-based distilleries, but only 27 are operational. Thirteen have shut down for various reasons, many with direct or indirect investments from prominent state political figures. Operational units have long faced stiff competition from national and foreign liquor brands, hampering capacity utilisation.

With the new policy, grain-based units are optimistic about a revival. Sources say a 180ml bottle of country liquor currently costs about `80, while an IMFL bottle of the same size costs around `220, following the recent state excise duty hike. An MML bottle is expected to retail for roughly Rs 150 per 180ml, thanks to preferential excise duty rates granted to grain-based units.

The policy aims to revive struggling and defunct units by offering them a protected market. Industry experts believe the move will yield handsome returns for politically connected promoters, given the government’s favourable terms and conditions.

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A Government Resolution on Thursday stipulated MML manufacturers must have their headquarters in Maharashtra, with no foreign investment allowed. Promoters and licensees must be state domiciliaries, and no liquor brand produced outside Maharashtra will be registered under the MML category. All MML bottles will bear a state-designed logo. Figures from the state excise department show that the 27 operational grain-based units have a production capacity of 5,544 bulk litres but currently produce 1,848 kilo litres per day (KLPD). They are expected to pose stiff competition to Maharashtra’s 72 molasses-based distilleries, of which 49 were operational in 2023–24.

The state’s sugar industry—largely controlled by political heavyweights—has 124 distilleries, most of them molasses-based. Analysts say the new MML policy could shift the balance in favour of grain-based units, consolidating the influence of those with vested interests in this sector.