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The Lakshadweep Excise Regulation, 2026, officially signed into law by President Droupadi Murmu, repealed the old Lakshadweep Prohibition Regulation, 1979
The central administration is actively developing Lakshadweep as a global, premium tourism hub.
The Union Government has lifted Lakshadweep’s 47-year-old total liquor ban primarily to boost tourism, generate regional revenue, and streamline excise administration.
The Lakshadweep Excise Regulation, 2026, officially signed into law by President Droupadi Murmu, repealed the old Lakshadweep Prohibition Regulation, 1979. This ended nearly five decades of total prohibition in the Muslim-majority archipelago.
Why was the rule changed?
The central administration is actively developing Lakshadweep as a global, premium tourism hub. Expanding regulated alcohol access beyond isolated resorts (like Bangaram) to broader hospitality establishments is intended to attract more domestic and international travellers.
The new framework opens a controlled economic avenue for the Union Territory. The administration can now levy excise duties, licence fees, and processing charges to fund regional development.
The regulation replaces a complete ban with a structured, legal system to monitor and handle the manufacture, import, export, transport, and sale of alcohol, according to reports.
How will the new system work?
The market is not unrestricted; it is heavily controlled by the government, say reports.
The administration has imposed steep duties—400% excise duty on Indian Made Foreign Liquor (IMFL) and imported liquor, 200% on beer, and 80% on wine.
Government-owned corporations, authorised agencies, and selective private entities can obtain official licences to handle or retail beverages.
The sale or purchase of liquor by anyone under 21 years of age remains strictly prohibited.
The Administrator retains full authority to impose local limits or re-enforce prohibition across any part of the islands if necessary.
Why the move is controversial
The policy has triggered significant local backlash and a public debate due to the following factors:
- Muslims account for roughly 96.5% of Lakshadweep’s population. Prohibition was originally enacted in 1979 to respect Islamic principles, which forbid alcohol consumption. Local groups argue that introducing open liquor sales undermines their traditional social fabric and lifestyle.
- Civil society organisations, local leaders, and Lakshadweep Member of Parliament Muhammed Hamdullah Sayeed have opposed the decision, pointing out that the policy is being top-down driven by the central administration without consulting the local populace.
- Opponents express deep concern that increased availability will lead to rising substance addiction among local youth and disrupt the peaceful, low-crime environment of the islands, say reports.
With agency inputs
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