Bihar’s liquor prohibition policy has come under renewed discussion after a recent research report recommended bringing the state’s decade-old ban to an end. The report has highlighted the financial cost of prohibition and questioned whether the policy has achieved its main social objectives.
For the BJP-led government, however, the decision is not only about revenue. While opening the liquor market could provide a major financial boost to the state, changing the policy could also create political complications because of former Chief Minister Nitish Kumar’s long association with prohibition.
NCAER Report Calls for Review of Prohibition
Bihar completed 10 years of complete liquor prohibition in April 2026. Nitish Kumar introduced the policy in April 2016, with reducing alcohol consumption and tackling social problems, including crimes against women, among its key objectives.
A study by the National Council of Applied Economic Research (NCAER) has now questioned the effectiveness of the policy.
The research paper, titled “Macro perspective of Bihar’s development achievements: Unfinished agenda and the way forward”, was presented at the India Policy Forum last week.
The study pointed to the growth of illegal liquor trade and the increasing use of alternative intoxicants. It suggested that banning legal alcohol sales did not eliminate demand, but instead contributed to the growth of an underground market.
Prohibition Comes at a High Financial Cost
The economic impact of the ban is another major issue highlighted by the report.
According to the study, removing prohibition could increase Bihar’s state revenue by around 14 to 15 per cent. The state currently generates approximately Rs 65,000 crore in annual revenue.
The report recommended bringing alcohol sales back under a regulated system and restoring excise duties. Such a move, it argued, could provide additional funds for sectors such as education, healthcare, infrastructure and employment.
For the BJP, the possible revenue increase makes the issue important, particularly as the government looks for ways to strengthen the state’s finances.
Why BJP May Not Rush Into a Policy Change
Despite the possible financial benefits, the BJP is unlikely to immediately withdraw the liquor ban.
The policy has been closely associated with Nitish Kumar since its introduction in 2016. Any decision to completely remove prohibition could therefore have political consequences and could be viewed as a direct reversal of a policy that became one of Kumar’s major political initiatives.
Sources within the ruling alliance have indicated that discussions about the issue are taking place. Concerns have been raised over the growth of illegal liquor networks, alternative intoxicants and the difficulties faced by the hospitality sector.
However, the government is expected to move cautiously rather than announce a sudden policy reversal.
NDA Leaders Have Different Views
The issue has also exposed differences in opinion within the NDA.
The JD(U) continues to officially support prohibition, but its Sitamarhi MP Devesh Chandra Thakur has called for the policy to be reviewed. He argued that liquor prohibition has not succeeded anywhere.
Union Minister Chirag Paswan, who heads the Lok Janshakti Party (Ram Vilas), acknowledged the need to increase Bihar’s revenue but said this should not automatically lead to the removal of the liquor ban.
Hindustani Awam Morcha (Secular) chief and Union Minister Jitan Ram Manjhi took a different position. He suggested that Bihar should follow the Gujarat model by focusing on stricter enforcement of prohibition.
Chief Minister Samrat Choudhary has also previously indicated that his government does not plan to reconsider the existing liquor policy.
RJD Uses Report to Target Government
The NCAER study has given the Opposition RJD an opportunity to attack the state government over the implementation of prohibition.
RJD national spokesperson Subodh Kumar Mehta said the findings reflected the failure of the government to properly implement the ban.
He maintained that his party still supports prohibition but argued that the policy has been accompanied by the growth of a parallel illegal liquor economy.
The RJD has also suggested that the government could eventually consider partially or completely changing the prohibition policy.
Illegal Liquor and Alternative Intoxicants Raise Concerns
The NCAER report highlighted several challenges linked to the current system. These include illegal liquor sales, the emergence of alternative intoxicants, pressure on law enforcement and risks associated with unregulated spurious liquor.
The study also pointed towards a rapid increase in the illicit drug market.
According to the researchers, a regulated alcohol market with excise taxation could reduce some of these problems while giving the government an additional source of revenue.
The report also argued that removing the ban could allow enforcement resources to be redirected towards other priorities.
Will Bihar Bring Back Legal Liquor Sales?
For now, a complete rollback of prohibition does not appear imminent.
The NCAER report has intensified the debate by presenting both economic and implementation-related arguments for reviewing the policy. However, the BJP-led government has to balance these considerations with the political importance of Nitish Kumar’s prohibition legacy.
The varying opinions within the NDA also suggest that reaching a common position may take time.
As a result, Bihar’s liquor ban is likely to remain in place for now, even as the debate over its economic impact, enforcement challenges and social consequences becomes increasingly prominent.