Alcohol Prohibition In Lakshadweep Islands Repealed After 47 Years

Alcohol was, although not absolutely banned, with exemptions given to government officials and tourists in limited conditions, specific to only the 2 islands of Kavaratti and Bangaram Island and their resorts. The broader prohibition framework was kept unchanged in favour of the local community and the religious beliefs of the majority Islamic citizens on these islands. Previous administrations sustained the ban for decades, citing local preferences and the social context. Community groups and political parties also opposed proposals to make alcohol available, arguing that it reflected local cultural and religious beliefs.

The prohibition was repealed by the government in a Gazette notification, according to reports on June 5. The notification stated that [The repeal of the prohibition law] shall come into force on such date as the Administrator may, by notification in the Official Gazette, appoint, under a licensing framework.

As the prohibition regime gets replaced by a licensing framework, the governance of the manufacture, possession, import, export, transport, purchase, sale and consumption of liquor now shifts to the Lakshadweep Excise Regulation, 2026. Excise duties also come into place with these new regulations, with 400% on Indian Made Foreign Liquor (IMFL) and foreign liquor, 200% on beer, and 80% on wine, as compared to the flat 70% VAT and excise duty ranging from 70% - 150% in Hyderabad, Telangana.

A minimum age of 21 for the sale and consumption of alcohol is still applicable, preventing access to teenagers and young adults. With the administrator still holding onto the power to regulate drinking, purchases, and possession of alcohol, and the enforcement of prohibition throughout the Union Territory, the alcohol market is still mostly restricted, under the control of the government.

Despite challenges and opposition, the central government has seemed to realise that heavy taxes and regulation over alcohol might be an ideal solution towards drawing more tourists to India, and specifically the Lakshadweep islands.