The number of liquor licences issued has been slashed from 65 to 21, a decision made by event organisers following consultation with stakeholders.

The decision comes despite only three people being arrested for intoxication at last year's event. An ACT Policing spokesperson said police participated in general discussions with other stakeholders in regards to liquor permits.

A community services directorate spokeswoman said following the 2017 festival, stakeholders provided "extensive feedback" on a number of aspects, including the increasing number of liquor stalls.

"Festival organisers made the decision to not provide alcohol permits for community groups this year and these changes were outlined in the stallholder application process that took place in September last year." the spokeswoman said.

"Some community organisations may be affected by changes to liquor licences and the festival team has worked with them to partner with liquor permit holders who can sell alcohol on their behalf or focus on the sale of food and other products."

Police Minister Mick Gentleman said ACT Policing was concerned about the level of training that some people had in serving alcohol to the Canberra community.

"Police only raised concerns in the responsibility of those that are serving alcohol in the area and of course they provide advice to all of our agency in act government on particular circumstances," he said

"This one was simply in regards to the training and responsibility for those outlets and we want to keep Canberra safe. We take on board the comments where appropriate.

ACT Policing said it supports permits being issued to organisations and groups that have staff appropriately trained in the responsible service of alcohol and the appropriate liquor licensing for handling the sale of alcohol in public, in line with the current legislation.

Festival goers were still a able to enjoy a drink at more than 20 licensed stalls at the festival as well as the existing business in the city.

Liquor licensing arrangements for future festivals will be reviewed as part of the annual review of policies and procedures.