UP becomes first state to roll out Excise Export Policy to boost ethanol exports

Uttar Pradesh has become the first state in the country to implement the Excise Export Policy, promoting the export of ethanol, investments in potable liquor manufacturing, and its presence in the International market.

UP is the first state in the country to introduce a separate excise export policy for three financial years.

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According to the excise export policy, which was approved by the state cabinet, it is being introduced for the first time to fulfil the following objectives:

– Increase production of ethanol and other related products for export based on local agriculture-related grains and fruits to industries.

– To encourage industrial investment for potable liquor exports and to expand ancillary sectors such as distilleries, packaging, logistics, and export services, thereby generating significant direct and indirect employment and enriching the State’s economy.

– To strengthen the position of Uttar Pradesh in the international markets by increasing the volume of export of potable liquor.

-To try to establish the important role of Uttar Pradesh in increasing the foreign exchange reserves of India.

Officials said here on Thursday that in order to promote exports, the rates of bottling charges, export pass fees, franchise fees and special fees have been reduced to the minimum level for exports equivalent to 25 per cent of the beverage capacity prescribed under the Excise Export Policy.

Besides, the provisions for brand registration and label approval for liquor brands meant for export have been relaxed and the fee rates have been reduced to the minimum level.

The policy says that the export duty on export of molasses based ENA to other states within the country has been reduced to Rs. 0.50/- per bulk litre.

Lastly, provisions have been made for distilleries to manufacture heritage wines for export, to allow tasting taverns and retail sales.