Sources say that nearly 626 lakh litres of alcohol have piled up at 47 distilleries after the May 31, 1997, proclamation which barred transfer and exports.

"Taking into consideration an interim order passed by the Mumbai high court on a writ petition filed by Ruiya and Ruiya and taking into consideration the production estimate of alcohol in the current year, it has been decided to allow export of 100 lakh litres of alcohol from distilleries in the state," excise commissioner Ajit Kumar Jain said.

Maharashtra State Cooperative Sugar Factories Federation chairman Narendra Borgaonkar said the lifting of the ban would help clear the piled-up stock. Borgaonkar said the distilleries, which had an average production capacity of 30,000 litres a day, had been crippled by the bar on movement.

Now that the bar has beenlifted, he said the federation would sell both special denatured and rectified spirit.

While denatured spirit will be exported at Rs 7 a litre, rectified spirit will be sold at Rs 8 a litre.

Borgaonkar called upon the state government to reduce the inter-state liquor duty from Rs 10 a litre to Rs 3 a litre. The inter-state duty rates applicable now have made it difficult for distilleries to export their produce. Most other states levy an inter-state duty varying between 30 paise to a litre to Rs 3 a litre.

According to the excise department, exports from the country will be allowed only through the Mumbai and Jawaharlal Nehru port trusts, while movement outside the state will be permitted only through the check-posts of the state excise department.

Manufacturers will need to seek an export pass under state rules before shipping their produce, a state official said.