Wednesday, March 11

Brace for a bigger bar tab in UP from April

Retail liquor prices in Uttar Pradesh are set to rise by around 7.5% from April after the state government approved its new excise policy for 2026–27. The increase will largely stem from higher licence fees for shop owners and revised pricing rules, which are expected to make most categories of liquor costlier in the coming financial year.Also Read | Tariff cuts on US booze may barely dent India’s dominant spirits marketThe state cabinet has cleared the policy along with a separate export framework aimed at promoting liquor manufactured in Uttar Pradesh in overseas markets.Higher fees, revised pricing Under the new policy, the minimum guaranteed revenue (MGR), the fixed amount retail vendors must pay to the government, has been increased by 7.5%. Licence fees for bhang shops will rise by 10%. There will also be a marginal hike in the special additional excise duty on Indian Made Foreign Liquor (IMFL).In a key pricing change, the maximum retail price (MRP) of country liquor and Uttar Pradesh Made Liquor (UPML), except for the 25 per cent v/v category, will be rounded up to the next multiple of Rs 10. In simple terms, if a bottle is priced at an uneven figure, it will now be adjusted upward to the nearest Rs 10 mark. A new 100 ml pack has also been introduced for 42.8 per cent v/v UPML.Also Read | Liquor revenues on course but dropping sales worry distillers, retailers in KarnatakaOfficials estimate that these measures together could generate an additional Rs 1,500 crore in revenue for the state.Retail outlets, including composite shops, model shops, premium model shops, country liquor and bhang stores, will mainly be allotted through a renewal process. Shop timings will remain unchanged, from 10 am to 10 pm.The annual minimum guaranteed quantity (MGQ) for country liquor shops will be revised depending on location, and monthly supply will be adjusted to match seasonal demand. District collectors have also been given the authority to approve relocation of liquor shops within their jurisdictions.Export push and changes in premium salesAlongside domestic reforms, the government has notified a dedicated excise export policy for 2026–29. It is the first standalone export-focused liquor policy in the country. The move is aimed at encouraging investment in distilleries, bottling plants, packaging units and logistics to strengthen Uttar Pradesh’s presence in international markets.In urban local bodies and Gautam Buddh Nagar district, model and premium shops will have to ensure a minimum share of imported and premium IMFL in their monthly sales. Also Read |Tipplers swap shots for pints as states shake up liquor lawsPremium retail outlets across the state will also be required to maintain a fixed proportion of super-premium and high-end liquor in their overall sales mix.Excise duty on wine has been rationalised, with lower rates for standard wine, while fortified wine will attract an additional levy. Low-alcohol premium retail shops selling wine and ready-to-drink (RTD) beverages will now be allowed in municipal corporation areas.Bars serving only low-alcohol beverages, beer, wine and RTDs may be permitted in selected districts, including Ghaziabad, Agra, Prayagraj, Varanasi and Lucknow.(With PTI inputs)
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