Kerala Excise Department Halts New Liquor Licences Pending State Policy

The Kerala Excise Department issued a circular stating that no new liquor licences will be granted until the state government formally promulgates its pending liquor policy. The move, announced earlier this week, applies to all categories of alcohol outlets, including bars, restaurants and retail shops.

Officials said the suspension is intended to prevent a fragmented licensing regime while the government finalises comprehensive regulations covering production, distribution and consumption. By waiting for the policy document, the department aims to align future licences with the state's broader objectives on public health and revenue.

Existing licence holders will continue to operate under their current permits, but any pending applications have been placed on hold. Industry bodies have welcomed the clarity the policy is expected to bring, while also urging the government to expedite the drafting process to avoid prolonged uncertainty.

The excise department has indicated that once the liquor policy is published, it will resume processing applications in accordance with the new guidelines, and will communicate the revised procedures to stakeholders.