UP’s excise policy to prioritise liquor exports

The Uttar Pradesh government is in the final stages of framing its excise policy for the 2026–27 financial year, with a strong focus on boosting liquor exports and encouraging the establishment and operation of distilleries, according to a media report.

The report stated that the excise department has conducted consultations with industry stakeholders to develop a more robust and industry-friendly policy framework. A key objective of the proposed policy is to create an ecosystem that supports exports while simultaneously strengthening revenue generation for the state.

The state government is targeting a significant rise in excise collections, aiming to generate over ₹60,000 crore through duties levied on alcoholic beverages by March 31 under the new policy regime.

Beyond revenue augmentation, the policy is also expected to contribute to employment generation, particularly in smaller towns and remote regions where grain procurement costs are comparatively lower. Increased distillery activity is likely to create jobs for local youth and spur demand for agricultural produce, thereby offering additional income opportunities for farmers.

To improve ease of doing business, the excise department is planning to reduce procedural bottlenecks and introduce a single-window clearance mechanism to enhance transparency. Existing rules and operational guidelines governing distilleries are expected to be amended to streamline day-to-day operations.

The report further indicated that additional incentives may be introduced to promote the export of spirits from Uttar Pradesh to other domestic markets. Expansion in production capacity is expected to translate into higher revenues for the state over the coming years, while positioning Uttar Pradesh as a growing hub for spirits manufacturing and exports.