Breweries Association of India urges Bihar to lift liquor ban in phases

INDIA – The Breweries Association of India (BAI) has urged the Bihar government to consider lifting the state’s decade-long prohibition in a phased and controlled manner, beginning with the sale of low-alcohol beverages such as beer and wine. 

In a letter addressed to Bihar Chief Minister Samrat Choudhary, the association recommended that the state gradually ease restrictions introduced under the Bihar Prohibition and Excise Act, 2016, which prohibits the manufacture, sale and consumption of all alcoholic beverages. 

The BAI proposed that the first phase should permit products containing less than 15% alcohol, including beer and wine, as part of a regulated framework aimed at reducing harmful alcohol consumption while restoring legitimate industry activity. 

To support responsible alcohol regulation, the association recommended adopting an Alcohol-in-Beverage (AIB) taxation model that links taxes directly to alcohol content rather than beverage type. 

“While most governments tax beverages with higher alcohol content more heavily, the Karnataka government has rolled out an AIB-based taxation framework that sets the amount of tax on the basis of the amount of alcohol in the beverage, regardless of the type of beverage,” the letter stated. 

The association also proposed measures designed to support social welfare. These include mandating that 75% of factory-floor employees be women to promote economic empowerment, introducing a de-addiction cess to establish at least one de-addiction centre in each of Bihar’s 38 districts, and imposing a women welfare cess on alcohol sales to channel excise revenue into long-term programmes benefiting women across the state. 

Highlighting the continued presence of illicit alcohol, the BAI said illegal liquor remains widely available despite prohibition.  

According to the association, authorities seized 3,775,321 litres of liquor in 2025, while the average monthly seizure during the first two months of 2026 reached 370,684 litres, representing an 18% increase over the 2025 monthly average. 

The association also argued that prohibition has significantly reduced the state’s revenue potential.  

“Additionally, the state has lost an additional ₹10,000 crore of indirect tax revenue in the last decade from ancillary industries and the hospitality and logistics sectors,” the letter said. 

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