Lucknow, February 13 Retail liquor prices are set to increase in Uttar Pradesh from April, as the state has approved the excise policy for 2026-27, which focuses on an export-focused framework and revised MRP norms to boost revenue.
According to a press statement, the state cabinet cleared the policy, introducing higher license fees for retail vendors and revisions in pricing norms that are expected to push up liquor prices across categories in the new financial year.
Meanwhile, the state has also notified a dedicated excise export policy for 2026-29, making it the first in the country to introduce a standalone framework to promote overseas shipment of liquor manufactured within the state.
The policy seeks to encourage investment in distilleries, bottling, packaging and logistics to enhance Uttar Pradesh's footprint in global markets.
Officials said the export push and domestic excise reforms are designed to strengthen revenue mobilization while expanding the state's presence in the alcoholic beverages sector.
As part of the changes, the minimum guaranteed revenue (MGR) or license fee for retail liquor shops has been raised by 7.5 per cent, while bhang shop license fees will go up by 10 per cent. The government has also provided for a marginal increase in the special additional excise duty on Indian Made Foreign Liquor (IMFL).
In a significant pricing reform, the maximum retail price (MRP) of country liquor and Uttar Pradesh Made Liquor (UPML), except for 25 per cent v/v strength, will be rounded up to the next multiple of Rs 10. A new 100 ml pack has also been introduced for 42.8 per cent v/v UPML. Officials estimate these measures could yield an additional Rs 1,500 crore in revenue.
As per the statement, retail outlets, including composite shops, model shops, premium model shops, country liquor and bhang stores, will primarily be allotted through a renewal process upon receipt of applications. Shops will continue to operate between 10 am and 10 pm.
The annual minimum guaranteed quantity (MGQ) for country liquor shops will be revised with area-specific increases, and its monthly distribution will be aligned with seasonal demand patterns.
The policy also empowers district collectors, as licensing authorities, to approve relocation of retail liquor outlets.
In urban local bodies and the Gautam Buddh Nagar district, model and premium model shops will be required to ensure a minimum share of imported and premium IMFL in their monthly guaranteed revenue. Premium retail vends across the state will also have to maintain a specified proportion of super-premium and high-end liquor in their sales mix.
Excise duty on wine has been rationalised with a reduction in rates for standard wine, while fortified wine will attract an additional levy.
Low-alcohol premium retail vends for the sale of wine and ready-to-drink (RTD) beverages will be permitted in municipal corporation areas.
Bars serving only low-alcohol beverages, beer, wine and RTDs may be licensed in select districts, including Gautam Buddh Nagar, Ghaziabad, Agra, Prayagraj, Varanasi and Lucknow.