UP plans to boost sale of local wines

In a significant policy move aimed at promoting local wine production, the Uttar Pradesh government is likely to propose amendments to its existing excise policy to facilitate the retail sale of wines made from fruits grown within the state, according to a media report.

The excise department, acting on representations from winery operators, is preparing to place a proposal before the state cabinet that would create a minimum guarantee sub-quota for ‘Made in UP’ wines. This step is expected to integrate local wines into the existing retail ecosystem and encourage sales through licensed outlets.

Despite a policy introduced in March 2022 to allow wine production from locally sourced fruits such as mango, litchi, jamun, and grapes, commercial operations at the four wineries in Lucknow, Muzaffarnagar, Saharanpur, and Noida are yet to commence. A key barrier has been the lack of retail participation, mainly due to the absence of excise duty on local wines, which prevents retailers from counting such sales toward their Minimum Guarantee Quota (MGQ) obligations.

Currently, MGQ rules mandate retailers to meet fixed sales targets of excise-generating liquor like country liquor, Indian Made Foreign Liquor (IMFL), and beer to contribute assured revenue to the state. Since local wines are exempt from excise duty, stocking them does not help retailers meet this quota.

The proposed policy revision seeks to create a dedicated sub-quota within the MGQ specifically for local wines, thereby incentivising retailers to include them in their offerings.