Even as liquor prices at licensed shops are regulated in Madhya Pradesh, bars remain exempt, prompting outrage from customers and concern over unchecked profiteering.
Over 100 bars in Indore and nearly 400 across 55 districts in the state are not covered under the excise department’s price regulation rules. This means the same brand of alcohol can cost wildly different amounts depending on where it is consumed — with no legal cap on pricing.
To check overcharging at licensed retail outlets, the state excise department has introduced QR codes that must be pasted at three visible spots in every licensed liquor shop. Customers can scan the code to verify the minimum and maximum retail prices, and also lodge a complaint if they are overbilled.
But this mechanism applies only to retail shops — not to bars or luxury hotels, many of which hold bar licences. These establishments purchase alcohol from licensed shops at government-approved rates, then sell it to customers at prices 8 to 10 times higher. The inflated rates are often disguised by combining alcohol costs with food, service, and entertainment charges.
Some bars even undercut government-regulated minimum selling prices to attract more footfall, leading to losses for nearby licensed liquor outlets. Insiders say bar licences cost just a fraction of what a retail liquor licence does, yet bars can operate freely without pricing oversight.
Many patrons and consumer rights advocates argue that the government must extend the QR code and price regulation system to bars and hotel bars as well. This would not only benefit customers but also ensure fair trade and protect the earnings of licensed liquor shop owners who invest crores into their contracts.
As things stand, bar and hotel owners continue to enjoy huge margins, passing inflated costs to customers — a loophole many believe the excise department can no longer afford to ignore.