BAI welcomes UP’s excise policy for FY 26–27

The Brewers Association of India (BAI) has welcomed the balanced and growth-oriented approach adopted by the Uttar Pradesh government in its excise policy for financial year 2026–27. According to BAI, the revised framework enhances transparency in licensing and approvals while providing clarity across distribution and taxation, creating a stable environment for the beer industry.

A key highlight of the policy is the decision to maintain existing taxes on beer while marginally increasing duties on spirits. The overall impact on IMFL prices is expected to rise by around ₹10 per 180 ml bottle, while country liquor prices may rise by ₹5 per 200 ml. Beer prices, however, will remain unchanged. The calibrated structure is seen as encouraging a shift towards lower-alcohol beverages without compromising state revenues.

The policy also expands low alcoholic beverage licences across municipal corporation areas, building on last year’s rollout in select cities. Measures like stable label registration fees, extended renewal timelines for microbreweries and QR-based track-and-trace systems further improve ease of doing business.

“The recently announced excise policy of Uttar Pradesh is a well calibrated optimisation of State’s revenue and public health goals. While there has been a marginal hike in the consumer prices of hard liquor, beverages with low alcohol content like beer have been spared. This is a balanced approach which will not disrupt the liquor industry,” said Vinod Giri, Director General, BAI.

The member companies of BAI, viz., AB InBev and United Breweries Ltd. have announced investments of ₹1,400 crore in new greenfield breweries, alongside fresh investments by ancillary suppliers. “Beer industry ecosystem is investing ₹5,500 crores in the State and is expected to create over 3,000 jobs directly, most of them in hinterlands. This will trigger economic activities in the areas not targeted by urban-centric industries. This level of investment needs a stable and conducive regulatory environment to remain commercially viable. We are glad to see the UP Government take progressive steps in the policy to support the beer industry in terms of taxation and licensing, and make its everyday operations smoother,” Vinod added.