Uttar Pradesh Unveils Ambitious Liquor Policy Reforms

In a significant policy shift, Uttar Pradesh is set to hike retail liquor prices starting April, following the approval of its excise policy for 2026-27. This policy introduces an export-focused framework alongside revised MRP norms, aiming to generate increased revenue and encourage overseas expansions.

This new policy, endorsed by the state cabinet, includes higher licensing fees for retail liquor vendors, which is expected to elevate liquor prices across various categories. Furthermore, Uttar Pradesh has unveiled a dedicated excise export policy for 2026-29, a pioneering move in India, to boost the export of locally manufactured liquor.

Officials highlight that these reforms, including a 7.5% increase in minimum guaranteed revenue or license fees for shops and a marginal uptick in excise duty, are designed to strengthen revenue mobilization while promoting global investment. The state hopes these measures will yield an additional Rs 1,500 crore in revenue.