Policy tweak leads to 12% jump in UP’s excise revenue in a year

Lucknow: Changing the structure of the liquor trade has yielded positive results for the state govt. The annual revenue collected through excise duty on alcoholic beverages has gone up by almost 12 per cent from the time composite shops were introduced. Compared to the 2024-25 financial year, when liquor trade generated Rs 52,573 crore for the state coffers, during 2025-26 the revenue increased to about Rs 59,000 crore. The increased collection has been possible as the department was able to cater to a wider number of liquor patrons since both foreign liquor and beer were allowed to be sold from the same counter within a composite liquor shop.Before April 1, 2025, sale of foreign liquor (whisky, vodka, gin, brandy and rum) as well as that of beer and country liquor used to take place from standalone retail vends. The department issued licences to 27,308 liquor vends through which retail traders were able to cater to a wider customer segment, the primary reason resulting in substantial growth of the industry between April 1, 2025, and March 31, 2026.State excise minister (independent) Nitin Agarwal said, "We have been making efforts to ensure the quality of the liquor that is produced in UP keeps getting better with time. Also, I want to emphasise that even when the quality is improving, the price points have remained stable for the patrons."Excise commissioner Adarsh Singh said, "The changed scenario has helped us in raising the bar further. At the same time, we have also made it easy for the industry stakeholders to set up units in the state in order to promote exports of grain-based and molasses-based extra neutral alcohol. Also, maintaining strict vigil and regular monitoring helped us in achieving the targets."In another positive sign, out of the total shops that were introduced after the online lottery draw in the previous fiscal, 94 per cent have been renewed. The retailers owning the retail vends preferred to pay an additional 7.5 per cent of the licence fees that were commanded last year to be allowed to operate again. The annual revenue figures, officials added, could go up further as in some districts additional money was deposited in the treasury on Sunday and Monday, and final reconciliation is underway in collaboration with the finance department.The draw to operate the leftover liquor shops, which were not renewed by the licensees, would take place on April 9. "If all the shops are not usurped in the next round, we would conduct lottery draws again," said an officer.