UP Cabinet approves excise policy 2025-26: e-lottery system introduced for liquor shops

New Policy to Enhance Transparency, Introduce Tetra Packaging, and Boost Fruit-Based Liquor Production

In a major policy shift, the Uttar Pradesh Cabinet has approved the excise policy for the financial year 2025-26. A key highlight of the new policy is the introduction of an e-lottery system for managing all liquor shops in the state, ensuring greater transparency and efficiency in the licensing process.

Announcing the decision, State Excise Minister Nitin Agarwal stated that the new system will apply to all desi liquor shops, composite shops, model shops, and bhang shops. Under the e-lottery system, each applicant will be allowed to apply only once, and no more than two shops will be allotted per applicant.

Revised Processing Fee Categories

The processing fee for liquor shop applications has been categorized into five tiers based on location:

Category 1: Municipal corporation areas of Gautam Buddha Nagar, Ghaziabad, Lucknow, Agra, Varanasi, Prayagraj, Gorakhpur, and Kanpur (within a 3 km radius). Fees: ₹65,000 for desi liquor, ₹90,000 for composite shops, ₹1 lakh for model shops, and ₹25,000 for cannabis shops.

Category 2: Metro areas outside the first category (within a 3 km radius). Fees: ₹60,000, ₹85,000, ₹90,000, and ₹25,000, respectively.

Category 3: All municipal areas (within a 3 km radius). Fees: ₹50,000, ₹75,000, ₹80,000, and ₹25,000, respectively.

Category 4: Nagar Panchayat boundaries (within a 3 km radius). Fees: ₹45,000, ₹65,000, ₹70,000, and ₹25,000, respectively.

Category 5: Rural areas. Fees: ₹40,000, ₹55,000, ₹60,000, and ₹25,000, respectively.

New Liquor Packaging and Licensing Updates

To enhance safety and prevent adulteration, country liquor will now be mandatorily sold in tetra packs instead of glass bottles. Additionally, the government has introduced 90ml bottles in the regular foreign liquor category, along with 60ml and 90ml bottles in the premium segment.

The Minimum Guarantee Quota (MGQ) for country liquor has been increased by 10%, maintaining last year’s policy trend. Additionally, the license fee per bulk liter has been increased from ₹254 to ₹260.

Support for Farmers in Fruit-Based Liquor Production

The excise policy also includes incentives for farmers engaged in fruit-based liquor production. A dedicated liquor shop will be set up at every district headquarters to promote their products. The licensing fee for these shops has been set at ₹50,000 for divisional and district headquarters and ₹30,000 for other district locations.

With these measures, the Uttar Pradesh government aims to streamline liquor sales, enhance consumer safety, and support local farmers in the growing fruit-based liquor sector.