Kerala Excise Department Halts Fresh Liquor Licences Until 2026-27 Policy

THIRUVANANTHAPURAM — Deputy Excise Commissioners across divisions in Kerala have been directed not to issue fresh liquor licences until the new policy for the 2026-27 financial year is framed. Officials confirmed the development on Sunday following a communication sent out on Saturday.

Additional Excise Commissioner (Enforcement) R Jayasankar, who is currently holding additional charge of Excise Commissioner, stated that the government issued strict instructions against granting fresh licences in the present circumstances. The communication cited government directives issued on August 4 and November 3, 2026, regarding business licences, including liquor sales.

According to the department, after the new government assumed office in May 2026, a decision was made to halt the processing of fresh licences on applications that had already been submitted. Instead, applicants have been asked to resubmit their applications once the new liquor policy is formally formulated. These future submissions will be subject to revised conditions and legal provisions, and officials have been instructed not to initiate any preliminary proceedings on fresh licences in the interim.

The administrative update follows a leadership change within the department, with R Jayasankar stepping into the additional charge after the previous incumbent, Seeram Sambasiva Rao, was transferred.

The policy pause also follows recent scrutiny over licence issuances. Excise Minister M Liju had previously expressed dissatisfaction after three bars in the Ernakulam and Kottayam districts received licences under the previous LDF government’s framework. Consequently, two Deputy Excise Commissioners were suspended.

Minister Liju had also objected to a licence granted to a Chalakudy-based bakery chain allowing the sale of horti wine under the prior policy. That specific licence was subsequently cancelled, and the official responsible was transferred. The minister has announced that the UDF government's new liquor policy is scheduled to be presented by the end of this month.

"Regulatory pauses and policy shifts in regulated sectors like retail and liquor sales directly impact business planning and operational timelines. When a government decides to halt fresh licensing pending a new framework, existing and prospective businesses must adapt by aligning their compliance strategies with upcoming policy announcements. For entrepreneurs and business owners operating in heavily regulated markets, maintaining regulatory agility and closely monitoring legal provisions is essential to navigate periods of transition smoothly." — Dr. Shishir Gupta, Founder & CEO, StartupLanes