The Jharkhand government has decided to exit the liquor retail business. Under the new Excise Policy 2025, liquor retail sales will be entirely handed over to private traders from March 1. 

The state-owned Jharkhand Beverage Corporation Limited (JSBCL) will now be restricted to wholesale operations only. Along with this, the government has announced an increase in liquor prices. An additional excise tax has been imposed under the new policy, leading to a price hike ranging from Rs 5 to Rs 100.

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Jharkhand’s Minister for Excise and Prohibition, Yogendra Prasad, told The Statesman that this decision was taken after a departmental review. He expressed confidence that this shift would result in a positive increase in government revenue and bring more transparency to the system.

Once this policy comes into effect, the government will completely withdraw from retail liquor sales, leaving the business in the hands of private traders. Liquor shops in the state will be allocated through a lottery system, where applications will be invited, and shops will be allotted to selected traders. 

In addition to traditional liquor shops, sales will now be permitted in malls, departmental stores, and model shops. Departmental stores with an area of over 2,000 square feet will be allowed to allocate 10 per cent of their space for liquor sales, while malls larger than 50,000 square feet will be able to set up dedicated liquor stores of 200 square feet. Air-conditioned model shops will also be introduced, where customers can consume liquor on the premises.

Under the government’s new policy, liquor prices will see an inevitable hike. The price of liquor costing up to Rs 90 will increase by  Rs  5, liquor priced between Rs 91 and  Rs  950 will rise by  Rs  10, those between  Rs  951 and  Rs  1950 will see a  Rs  50 hike, and liquor priced above  Rs  1951 will become costlier by  Rs  100.

The decision has received mixed reactions from experts. Some believe this move will make the market more competitive and convenient for consumers, while others fear that privatization could lead to uncontrolled price hikes. The state government has invited public suggestions and objections regarding the new policy until February 16, after which it will be officially notified.

The new excise policy is set to completely transform the liquor sales system in Jharkhand. The government’s decision to exit the retail business is based on a departmental review and past financial losses. However, the rise in liquor prices is expected to impact consumers. It remains to be seen how this policy will affect the state’s revenue, liquor traders, and consumers in the long run.