Madhya Pradesh craft beer and microbrewery rules, as of October 2026

The licence is MB-3

Madhya Pradesh calls its microbrewery licence MB-3. An Excise Commissioner circular of 6 April 2022 set out approval of MB-3 licences in Indore and Bhopal under the Excise Policy 2022-23. Those two cities were the starting point. The 2025 amendment below does not repeat a city limit in the summaries we read, so ask whether your district is now open before you look at sites.

Who can apply after February 2025

An amendment to the Madhya Pradesh Beer and Wine Rules, 2002, in force from 14 February 2025, rewrote rule 3-A. Two groups may now apply:

• Existing FL-2, FL-3 or FL-4 bar licensees with at least 2,000 sq ft of separate extra space for plant and machinery.
• Restaurants or hotels with a food licence that also have 2,000 sq ft for the plant, an air-conditioned dining or serving area of at least 1,500 sq ft, separate toilets for men and women, adequate parking and a site that meets the liquor shop location rules. The applicant must be at least 21, with no criminal record and completed e-KYC.

Both groups file an affidavit to spend at least ₹50 lakh on plant and machinery. The amendment also says meeting the conditions gives no right to a licence. The Excise Commissioner's decision is final.

That 2,000 sq ft is a sensible floor. A 5 hl brewhouse with four or five fermenters, a cold room and a glycol chiller fills it quickly once you leave space to move a keg trolley.

Beer duty for 2026-27

A notification of 31 March 2026, effective 1 April 2026, sets beer duty as:

• Bottled or canned beer: 130% of the ex-warehouse price.
• Draught beer: ₹80 per bulk litre.

We found no separate microbrewery rate in that notification, so expect microbrewery draught to be assessed as draught unless your licence terms say otherwise. The 2026-27 excise policy also doubled the bottling fee on beer from ₹3 to ₹6 per bulk litre. A flat ₹80 a litre on draught is steep next to Himachal or Maharashtra, so cost it before you choose a tap list. Our beer excise duty explainer covers how duty feeds into price.

Can a microbrewery sell beyond its own bar?

This is unclear. We found nothing published on an MB-3 production cap, growlers or supply to other bars. The original 2002 Beer and Wine Rules allow draught beer from a B-3 brewery to go in bulk to FL-2 or FL-3 bar holders specially permitted to sell it. Whether an MB-3 holder can use the same route is a question to put to the Excise Commissioner in writing.

Pouring draught without a brewery

A restaurant or hotel that wants craft beer on tap needs an on-trade bar licence. In Madhya Pradesh those are the FL-2, FL-3 and FL-4 licences named in the 2025 amendment. Draught then comes from a licensed brewery under the bulk draught permission in rule 18(2). The duty is the ₹80 per bulk litre draught rate. There is no state beverage corporation in the chain we could find. The 2026-27 policy moved all 3,553 retail shops to e-tender and e-auction, opened no new shops and banned ahatas, the drinking rooms next to shops. That squeezes take-home sales, which makes a bar tap more valuable to a brand.

Contract brewing

We found no Madhya Pradesh provision that sets out contract or tie-up brewing for beer. The 2026-27 policy lets manufacturers declare prices on the portal without prior approval and simplifies label registration for exports, but that is not the same thing. If you want to brew under someone else's B-3 licence, ask the Excise Commissioner how labels would be registered. Our contract brewing guide covers how such deals usually work.

Before you sign anything

Most of what is published on MP microbreweries is secondary summary, not gazette text. Ask for the current MB-3 conditions, fee and any capacity limit from the Excise Commissioner's office. Rates and rules change, sometimes mid-year. Before you sign a lease or order kit, get the current position for your licence class in writing from the excise office and work with a licensing adviser. This guide is a working summary, not legal advice.

Common questions

Does Madhya Pradesh allow microbreweries?

Yes. The licence is MB-3. A 2022 circular covered Indore and Bhopal. A February 2025 amendment let bar licensees and qualifying restaurants or hotels apply, with a ₹50 lakh plant and machinery commitment.

What is the beer excise duty in Madhya Pradesh for 2026-27?

Under a notification of 31 March 2026, bottled or canned beer pays 130% of the ex-warehouse price and draught beer ₹80 per bulk litre.

Can an MP microbrewery supply kegs to other bars?

We found no published rule that allows it. The 2002 rules let a B-3 brewery send bulk draught to specially permitted FL-2 or FL-3 bars, so ask the Excise Commissioner whether MB-3 holders can do the same.