Major liquour stocks such as United Spirits, Radico Khaitan, and Allied Blenders will be in focus during today's session as the Assam government has taken a major step aimed at implementing sweeping reforms in the state's excise sector and to legally protect and commercially promote heritage alcoholic beverages. This can likely hike liquor prices in the state.
With the approval of the Governor of Assam, the Excise Department has notified the "Assam Excise (Amendment) Rules, 2026", under which stringent regulations have been enforced regarding the sale of liquor, the location of liquor outlets, and the shifting of licenses. These rules have come into effect across the state from the date of publication of the official notification.
The key highlights of this new notification is 'Mandatory Minimum Guaranteed Revenue' (MGR). From now on, license holders of IMFL (Indian Made Foreign Liquor), beer, and country liquor wholesale and retail 'OFF' shops must pay a Minimum Guaranteed Revenue (MGR) to the government every financial year.
"The financial year will be divided into four quarters, and this revenue will be collected at rates of 22%, 25%, 27%, and 26%, respectively. Failure to pay the designated revenue will attract a 10% penalty on the outstanding amount, along with an additional interest rate of 1.5% per month for delayed payments," said the notification.
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In the notification, the government also stated that the distance regulations between two retail liquor shops have been made significantly more stringent. According to the new rules, the following distance limitations must be maintained when opening a new shop or relocating an existing one: Within Kamrup (Metropolitan) District -500 metres, Other Municipal Corporations, Municipal Boards, and Town Committee areas - 1 kilometre, Rural areas - 2 kilometres.
"It has been made mandatory for retail 'OFF' shops to sell liquor only in sealed and capsuled bottles with a minimum volume of 180 ml or larger. On the other hand, 'ON' shops (such as bars) must utilise bottles with a minimum capacity of 750 ml. Furthermore, 'Peg Measures' can be used to serve liquor to customers, where one full peg will be equal to 60 ml.
Intra-District Shifting - Within a district (excluding municipal corporation areas), the District Commissioner (DC) can grant permission to shift a shop, subject to prior approval from the Excise Commissioner. For shifting within municipal corporation areas, explicit permission from the State Government will be required. Rural-to-Urban Restriction - No liquor shop can be shifted from a rural area to an urban or municipal area.
However, shifting from an urban area to a rural area is permitted. Inter-District Shifting - Liquor shops can be shifted from the Kamrup (Metropolitan) district to other districts, but shops from other districts cannot be brought into Kamrup (Metropolitan). Additionally, no inter-district shifting will be allowed within 3 years of obtaining the license," said the notification.
In a groundbreaking move for the state's tribal and indigenous populations, Rule 619 under Section 10 of the newly amended regulations brings revolutionary changes to the Heritage Alcoholic Beverages sector. To legally protect and commercially promote the traditional drinks brewed by various ethnic communities of Assam, the government has announced unprecedented relaxations - Exclusive Rights - The license to manufacture these traditional heritage beverages will be granted strictly and exclusively to the local indigenous people or groups formed by the specific tribal/ethnic communities.
This step ensures that the rich cultural heritage of Assam is preserved and prevents any outside commercial exploitation. Massive Fee Reductions - To support local businesses, the application fee for a heritage liquor micro-manufacturing has been slashed from Rs 25,000 to Rs 15,000. Similarly, the retail 'Vend' license fee for selling heritage liquor has been reduced from Rs 5,000 to a mere Rs 500.
Production Cap - The maximum production capacity for these micro-manufactories has been capped at 1,000 litres per day," said the notification. On the other hand, a separate section, 'PART-XI', has been incorporated into the rules to introduce a distinct category named "Assam Made Liquor" which will have a strength of 17.12% v/v (70° UP). "The application fee for a manufacturing license under this category is fixed at Rs 1 lakh, while the vend license fee is set at Rs 50,000.
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