In a blow to the boozers in Uttar Pradesh, the state government has announced a minimal hike in retail liquor prices from April 1, 2026.
The announcement was made in the new excise policy here on Thursday. According to the policy, the rate of country-made liquor has been hiked by just Rs 5 per bottle. But the rate of Indian Made Foreign Liquor (IMFL) has been raised between Rs 10 and Rs 40 per bottle.
The government is expected to generate an additional Rs 1500 in revenue through this hike.
The MRP formulas for Indian-made wines and low-strength alcoholic beverages (RTDs) have been rationalized and the excise duty on wines has been reduced. An additional excise duty has been levied on fortified wines.
The policy says that a 100 ml capacity has also been introduced in 42.8 percent V/V Uttar Pradesh Made Liquor(UPML) in the year 2026-27.
A provision has been made to round off the maximum retail price of country liquor/UPML of all strengths except 25 percent V/V to the next multiple of Rs 10, which is expected to generate additional revenue of Rs 1,500 crore.
The MGR (Minimum Guaranteed Revenue)/license fee for retail liquor stores in the state has been increased by 7.5 percent for 2026-27. The license fee for ‘ Bhang outlets’ will increase by 10 percent.
Officials said it will be mandatory for the Model Shops and Premium Model Shops located in all the Municipal Corporation areas of the state and the entire district of Gautam Budh Nagar to receive overseas imported liquor equivalent to a minimum of 5 percent of their prescribed monthly minimum guaranteed revenue and Indian Made Foreign Liquor equivalent to a minimum of 2 percent at their premium and high-end clearance shops.
It will also be mandatory for all the premium retail vends of the state to receive overseas imported liquor equivalent to a minimum of 5 percent of their prescribed minimum MGR and Indian Made Foreign Liquor equivalent to a minimum of 2 percent at their super premium and high-end clearance shops.
Low alcoholic premium retail vend licenses for the sale of wine and LAB/RTD can also be approved in the Gautam Buddha Nagar district and all municipal corporations.
Bar licences can also be granted in Form FL-7(1) for low alcoholic strength beverages, beer, wine and RTD only in the districts of Gautam Buddha Nagar, Ghaziabad, Agra, Prayagraj, Varanasi and Lucknow of Uttar Pradesh.
Meanwhile, the government has decreased the revenue collection target of the excise department from Rs 63,000 crore to Rs 60,000 crore during this fiscal. The UP government has collected around Rs 44,000 crores as excise revenue till January 31, in this fiscal.
However, the target for the 2026-27 financial year excise revenue collection has been hiked to Rs 71,278 crores.