UP Govt Promotes Grain Alcohol With Liquor Price Adjustments

The Uttar Pradesh government has recently implemented a new excise policy aimed at reducing the prices of country-made liquor, a move expected to boost government revenue. Senthil Pandian C, the State Excise Commissioner, disclosed that the earlier nine categories for country-made liquors have now been streamlined to just four.

According to the State Excise Commissioner, the primary motivation behind the price reduction is to promote grain alcohol in Uttar Pradesh. This shift eliminates the state’s reliance on other regions and contributes to increased revenue. The government is actively encouraging the use of grain liquor over molasses liquor, as grain alcohol is renowned globally for its quality. Previously, Uttar Pradesh had to import grain alcohol from states like Punjab and Haryana. The new policy is anticipated to be beneficial, saving on import duties and reducing GST.

In addition to these changes, the government has set the license fee at Rs 254 per bulk litre, further contributing to enhanced revenue. The state aims to achieve revenue exceeding Rs 50 thousand crore in 2024–25 by increasing the minimum guarantee quota and minimum guarantee revenue by 10 per cent.

Despite these adjustments, there will be no increase in the liquor rates. The price of grain alcohol and 42.8-degree liquor of Uttar Pradesh Made Liquor (UPML), previously available at Rs 90, is now reduced to Rs 85. Additionally, a new category, 36-degree liquor, has been introduced in UPML with a set price of Rs 75. Notably, UPML will now also be available in glass and tetra packs for the first time.

To further augment alcohol-related revenue, the State Excise Commission plans to introduce franchise fees, allowing global brands to establish franchises with distilleries in Uttar Pradesh. In a bid to prevent public drinking, the government is providing 100 square feet of space near model shops.

In a broader strategic move, the export fee on beer has been reduced by 50 paise per litre. These initiatives collectively reflect the government’s multifaceted approach to optimizing revenue from the alcohol sector while also aligning with its goal of maintaining a stronger position in the market.