India, July 16 -- The Maharashtra government's recent decision to introduce a new liquor category-Maharashtra-Made Liquor (MML)-and simultaneously hike excise duties on Indian Made Foreign Liquor (IMFL) has sparked concern from the International Spirits and Wines Association of India (ISWAI).

The policy change, announced on June 10 following recommendations from a committee headed by then additional chief secretary Valsa Nair, shifts the excise duty on IMFL from the current rate of three times the manufacturing cost to a higher rate directly tied to the manufacturing cost. The move is intended to boost state revenue from liquor sales.

However, ISWAI has warned that the decision could have unintended consequences-including a rise in illi...