Uttar Pradesh unveils 1st ever Excise Export Policy

Uttar Pradesh has introduced India’s first standalone three-year Excise Export Policy (2026-29) and released its Excise Policy for 2026-27, announcing renewal of retail licences to ensure stability and continuity across the trade. The wholesale ecosystem has been revamped, with licence fees now linked to volumes, and distilleries permitted to open their own wholesale warehouses.

The state's export policy mandates to reduce export-related fees to nominal levels up to 25 percent of installed capacity, easing label approvals, lowering ENA export fees and allowing heritage liquor production, tasting taverns and retail management for export promotion, aimed at boosting ‘Brand UP’ globally and driving foreign exchange earnings and employment.

A 75 percent cap has been imposed on the sale of country liquor/UP-made liquor (UPML) from a single distillery per country liquor shop. Molasses-based country liquor will be available in 25 percent and 36 percent strengths in 200 ml tetra packs while grain-based UPML is permitted at 28 percent (200 ml) and 42.8 percent (200 ml and 100 ml). MGQ hikes and monthly bifurcation have been rationalised to improve viability of country liquor shops.

Excise duty on Indian and BIO wines has been reduced, while fortified wines attract higher duty; foreign liquor and beer duties remain unchanged. PRVs and model shops in Noida and municipal corporation areas must stock minimum BIO and premium IMFL quotas.