Lucknow, Aug. 28 -- Uttar Pradesh is rapidly emerging as a major hub for alcoholic beverage exports, with liquor shipments from the state rising 84.5 per cent year-on-year after the government introduced a dedicated three-year excise export policy to make locally manufactured liquor more competitive overseas.
The growth was significantly higher than the 6.3 per cent increase in India's overall liquor exports. Uttar Pradesh's share in the country's liquor exports rose from 8.1 per cent to 14 per cent, moving the state from fifth to third position among exporting states, only behind Maharashtra and Punjab.
The April-June figures show that the momentum continued into the first quarter of 2026-27. India exported alcoholic beverages worth Rs 965 crore during the period, of which Uttar Pradesh accounted for Rs 122.3 crore, or nearly 13 per cent of the national total. In volume terms, India exported around 8.13 crore litres of alcoholic beverages, while Uttar Pradesh accounted for nearly 1.05 crore litres.
The state had traditionally ranked seventh or eighth among liquor-exporting states. Its April-May exports stood at $8.6 million, compared with $4.66 million in the same period last year. India's total exports rose to $61.5 million from $57.8 million. Uttar Pradesh's increase of $3.94 million was higher than India's overall rise of $3.65 million.
The growth followed implementation of the Uttar Pradesh Excise Export Policy 2026-29 from April 1. The government has described it as the first dedicated three-year excise export policy introduced by an Indian state. The policy aims to reduce regulatory costs rather than provide direct financial assistance. It has abolished franchise fees on foreign liquor, beer and wine and waived brand registration fees.
For Indian-made foreign liquor and wine, the bottling fee for a 2,000-ml export bottle ranges from Rs 0.32 to Rs 4.11, against Rs 0.79 to Rs 4.11 for domestic movement. For 1,000-ml bottles, the export fee ranges from Rs 0.16 to Rs 2.05, compared with Rs 0.40 to Rs 2.05 domestically. Different slabs apply to bottles from 750 ml to 60 ml.
Similar relief has been extended to beer. For a 50-litre draught beer keg, the export fee ranges from Rs 3.10 to Rs 36.23, compared with Rs 7.55 to Rs 36.23 for domestic movement.
The policy is also attracting investments. United Breweries is setting up a unit in Unnao, while Mount Everest Breweries is establishing a facility in Hardoi. Woodpecker GreenAgri Nutrients has set up a unit in Farrukhabad.
Allied Blenders and Distillers has revived a closed unit in Moradabad, while Kian Distillery has applied to establish a beverage distillery and brewery in Gorakhpur.
Published by HT Digital Content Services with permission from Millennium Post.