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Bihar prohibition: A decade of dry law

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02.04.2026

On April 5, 2016, Bihar embarked on an ambitious and morally charged experiment, complete prohibition. Conceived as a transformative social reform aimed at curbing alcohol abuse, empowering women, and fostering public health, the policy was hailed as a bold assertion of political will. Ten years on, however, the moment calls less for celebration and more for introspection. Has prohibition delivered on its promises, or has it unravelled into a complex web of unintended consequences?

The origins of this policy lie in the political churn of 2015, when Chief Minister Nitish Kumar, responding to sustained demands from women's groups, pledged to enforce a complete ban on alcohol if returned to power. True to his word, the government implemented prohibition in phases-initially on April 1, 2016, followed by a comprehensive ban on April 5. Rooted in Gandhian ideals and Directive Principles of State Policy, the move carried both moral and constitutional resonance.

Yet, the policy marked a dramatic reversal from the state's earlier fiscal strategy. In 2005, Bihar's budget stood at a modest INR 27,000 crore, with limited revenue streams. To augment income, the government had expanded liquor retail aggressively. The number of liquor outlets rose from 3,436 in 2006-07 to 5,467 in 2012-13, with rural areas witnessing an increase of over 200 percent. Consequently, excise revenue surged from INR 500 crore in 2006 to nearly INR 6,000 crore by 2015. Alcohol had, in effect, become a fiscal mainstay. Prohibition, therefore, came at a steep economic cost. In 2015-16, Bihar earned INR 3,142 crore from excise........

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