The GR provides extensive policy justification:

A. Mohua Flowers (मोहाफुले) — Rationale:

• Mohua trees are found exclusively in the Indian subcontinent and grow abundantly in Maharashtra's forests.
• Import of mohua flowers is currently banned in Maharashtra.
• Despite low excise duty rates on mohua-based spirits, no producer was interested in manufacturing Domestic Liquor from mohua (due to limited consumer demand for the Domestic Liquor category).
• By reclassifying mohua-based spirits as Foreign Liquor, demand will increase.
• This will benefit tribal populations and generate additional income sources.

B. Cashew Apple (काजूबोंडे) — Rationale:

• Maharashtra is a leading state in cashew production in India.
• The cashew production process focuses only on the cashew nut; the cashew apple (काजूबोंडे) is wasted.
• By permitting spirit production from cashew apple byproducts, income sources will be created for:
  • Local farmers
  • Women's self-help groups engaged in cashew apple collection
  • By-products from spirit production (animal feed, compost) will also benefit farmers and producers.

  C. Other Fruits and Flowers (अन्य फळे/फुले) — Rationale:

  • Maharashtra produces large quantities of perishable fruits (citrus, grapes, pomegranate, etc.).
  • These fruits are lost to natural calamities and spoilage.
  • Converting these into spirit-based beverages will:
    • Provide direct income to farmers
    • Create employment in the liquor production industry
    • Reduce agricultural waste

    D. Taxation Efficiency — Rationale:

    • Current Problem: Indian-Made Foreign Liquor (IMFL) attracts the highest excise duty rate among all alcoholic beverages.
    • If the highest duty rate is applied to cashew/mohua spirits, retail prices become unaffordable, limiting market demand.
    • Solution: Apply a concessional excise duty rate of ₹50 per Proof Liter on these fruit/flower-based spirits (significantly lower than standard IMFL duty rates) to enable:
      • Affordable retail pricing
      • Market competitiveness
      • Increased farmer income and liquor industry employment

      ---

      DISTRIBUTION OF THIS ORDER

      This GR has been circulated to:

      1. Additional Chief Secretary to the Chief Minister, Office of the Chief Minister, Mumbai-32
      2. Leader of Opposition, Legislative Council / Legislative Assembly, Vidhan Bhavan, Mumbai
      3. Deputy Chief Minister / State Minister, State Excise, and their Private Secretary, Office of the Deputy Chief Minister / State Minister, Mumbai-32
      4. Chief Secretary, Government of Maharashtra, Office of the Chief Secretary, Mumbai-32
      5. Principal Secretary (State Excise), Home Department, Office of the Principal Secretary, Mumbai-32
      6. Commissioner of State Excise, Maharashtra State, Mumbai-23
      7. All District Magistrates
      8. All Divisional Deputy Commissioners (State Excise)
      9. All Superintendents (State Excise)
      10. RAUSHU-2 Section (for archival)

      ---

      WHO IS AFFECTED

      Direct Beneficiaries:

      • Farmers (local fruit/flower growers)
      • Tribal populations (mohua-dependent communities)
      • Women's self-help groups (cashew apple collection, agricultural activity)
      • Spirit distillers/manufacturers (Sample-I permit holders)
      • Beverage alcohol producers (PLL license holders)
      • Liquor retailers authorized under FL-II, FL-III, FL-IV, FL-IV-A licenses
      • Liquor consumers (increased product availability at regulated prices)

      Regulated Entities:

      • Existing distilleries seeking to diversify into fruit/flower-based spirits
      • Existing beverage alcohol producers (PLL licensees) seeking to source from new suppliers
      • Retail liquor licensees (FL-II, FL-III, FL-IV, FL-IV-A)

      Excise Administration:

      • State Excise Commissioner
      • Divisional Deputy Commissioners (State Excise)
      • District-level excise superintendents
      • All excise enforcement and licensing authorities in Maharashtra

      ---

      LICENSE TYPES AFFECTED / NEWLY INTRODUCED

      License Type	Purpose	Status	Affected
      Sample-I (नमुना-आय)	Spirit/Distilled Liquor Production from Fruits/Flowers	NEW	Newly created under this GR
      PLL (पीएलएल)	Beverage Alcohol Production from Sample-I Spirits	MODIFIED	Existing category; new usage authorized for fruit/flower spirits
      FL-II (एफएल-२)	Retail Counter Sale of Foreign Liquor	Existing	Authorized to sell products under this GR
      FL-III (एफएल-३)	Restaurant/Hotel Foreign Liquor	Existing	Authorized to sell products under this GR
      FL-IV (एफएल-४)	Club/Premises Foreign Liquor	Existing	Authorized to sell products under this GR
      FL-IV-A (एफएल-4 अ)	Other Premises Foreign Liquor	Existing	Authorized to sell products under this GR

      Not Permitted Under This GR:

      • FL-I (Export/Wholesale Foreign Liquor) — Not mentioned
      • CL (Country Liquor) licenses — Not authorized for these products
      • Toddy/Neera licenses — Not applicable

      ---

      IMPORTANT NOTES / CONDITIONS / PENALTIES

      A. MANDATORY RESTRICTIONS

      1. Grain/Cereal-Based Spirit Prohibition (अनिवार्य निषेध):

         • Spirits produced from grain or cereal (मळी/धान्य) CANNOT be used under these new Sample-I / PLL licenses.
         • No mixing of grain-based and fruit-based spirits is permitted.
         • Violation: License revocation and applicable penalties under BPA.

         • No FL-II Counter-Sale License Attachment:

           • PLL licenses under this policy cannot have an associated FL-II retail license.
           • Products must be distributed through bulk/wholesale channels to authorized FL-II, FL-III, FL-IV, FL-IV-A retailers.
           • Violation: License revocation.

           • Blending Only Between Fruit/Flower Spirits:

             • Blending is permitted only among spirits derived from different fruits/flowers.
             • Example: Mohua spirit may be blended with cashew apple spirit if supply is insufficient.
             • Grain-based blending is absolutely prohibited.

             B. OPERATIONAL CONDITIONS

             4. One-Window Clearance:

                • All licenses must be processed through a single-window system, eliminating multiple approvals.
                • This is an administrative efficiency measure to reduce processing delays.

                • Rules Amendment Pending:

                  • This GR is a policy framework only. Actual implementation depends on separate Statutory Rules Amendment Notifications to:
                    • Bombay Prohibition Act, 1949 (महाराष्ट्र दारुबंदी अधिनियम, 1949)
                    • Bombay Foreign Liquor Rules, 1953 (BFLR)
                    • Maharashtra Country Liquor Rules, 1973 (MCLR)
                    • These amendments will specify:
                      • Exact fee amounts (indexed to existing Sample-I and PLL fees for grape distillation/brandy)
                      • Detailed application forms and procedures
                      • Inspection and compliance protocols

                      C. TAXATION PROVISIONS

                      6. Excise Duty Rate — LOCKED AT ₹50/PROOF LITER:

                         • Minimum rate: ₹50 per Proof Liter (substantially concessional compared to IMFL rates)
                         • Formula: 3× production cost OR ₹50/proof liter, whichever is higher
                         • This ensures both affordability (for consumers) and viability (for producers)

                         • MRP Calculation:

                           • Must follow IMFL formula (न्याय-सम्मत मूल्य निर्धारण)
                           • Transparent and published pricing required

                           D. POTENTIAL ENFORCEMENT & PENALTIES

                           (Inferred from BPA Section 57-60 and BFLR non-compliance provisions):

                           • Unauthorized use of grain-based spirits: License suspension/revocation + Fine up to ₹5,000–₹10,000 (depending on BPA severity)
                           • Unauthorized FL-II attachment: Immediate license cancellation
                           • Blending prohibition violation: Confiscation of stock + License revocation
                           • False declaration of source material: Prosecution under BPA Section 54-56
                           • MRP/tax evasion: Criminal prosecution under BPA Section 57

                           E. APPEALS AND GRIEVANCES

                           (Standard under Maharashtra Excise Law):

                           • Denial of Sample-I or PLL license → Appeal to Deputy Commissioner (Excise)
                           • Denial at Deputy Commissioner level → Appeal to Commissioner of State Excise
                           • License suspension/revocation → Appeal under BPA Section 27-A (if applicable)

                           ---

                           EXCLUSIONS / NOT COVERED BY THIS GR

                           1. Grain/Cereal-Based Liquor: Existing rules for मळी/धान्य-आधारित मद्य remain unchanged.
                           2. Country Liquor (CL) Licenses: This policy does NOT extend to CL-I, CL-II, CL-III categories.
                           3. Domestic Liquor (देशी मद्य) Production: This policy specifically DISPLACES the Domestic Liquor classification — these are now Foreign Liquor.
                           4. Toddy/Neera Permits: Not affected; separate rules apply.
                           5. Export Licenses (FL-I): Not explicitly mentioned in this GR.
                           6. Manufacturing/Bottling Plants: Already covered under existing PLL rules; this GR extends the raw material base only.

                           ---

                           DOCUMENT ACCESSIBILITY

                           • Official Publication: Available on Government of Maharashtra website: www.maharashtra.gov.in
                           • Portal Reference Code: 202206231116067729
                           • Authentication: Digitally signed by Sudhakar S. Yadav, Under Secretary, Home Department, Government of Maharashtra

                           ---

                           NEXT STEPS FOR STAKEHOLDERS

                           For Potential Distillers/Producers:

                           1. Await Rules Amendment Notification — Sample-I permit application procedures, fee structure, and detailed eligibility criteria
                           2. Source Agricultural Materials — Establish supply chains for cashew apple, mohua flowers, or eligible fruits
                           3. Prepare Production Plans — Demonstrate capacity and intended output volumes
                           4. Apply through One-Window System — Submit applications once rules are notified

                           For Retail Licensees:

                           1. Update Inventory Systems — Prepare for new "Local Liquor" (स्थानिक मद्य) product categories
                           2. Train Staff — Educate on new products, MRP calculation, and compliance markers
                           3. Monitor Price Notifications — Await MRP guidelines from Excise Commissioner

                           For Excise Administration:

                           1. Draft Detailed Rules — Amendment notifications to BPA/BFLR/MCLR
                           2. Design Forms and Procedures — Sample-I and PLL application formats
                           3. Establish Inspection Protocols — Quality control, source verification, tax compliance monitoring
                           4. Set Up One-Window System — Integrate approvals across district and divisional offices

                           ---

                           COMPLIANCE DEADLINE

                           No specific implementation deadline is stated in this GR. The policy becomes operational upon:

                           1. Publication of Rules Amendment Notification (to be issued separately)
                           2. Notification date of the Rules Amendment (effective date to be specified in the amendment)

                           ---

                           END OF ANALYSIS