Lucknow, July 7, 2025 — In the run-up to the Uttar Pradesh Excise Investors Summit 2025, scheduled for July 9, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has welcomed the recent Excise Policy reforms introduced by the Uttar Pradesh government.
CIABC stated that the new progressive Excise Policy is a significant step towards increasing state revenue and attracting greater investment in Uttar Pradesh. The policy has also brought much-needed transparency, as liquor shops in the state are now allocated through an e-lottery system, replacing the earlier renewal-based process.
Key Reforms Appreciated by CIABC
CIABC highlighted several initiatives under the Excise Policy 2025-26:
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Composite Shops: The introduction of composite shops—where all categories of alcoholic beverages such as beer, wine, and IMFL can be sold under one roof—will enhance consumer convenience. Unlike earlier years where different categories were sold at separate outlets, this reform increases retail efficiency without increasing the number of shops, and also allows shop owners to improve customer experience through better investment.
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Low-Alcohol Bars in Urban Centres: The policy allows low-alcohol bars (serving only beer and wine) to open in Noida, Ghaziabad, Lucknow, and Agra, particularly in IT and ITES zones and industrial areas of over 20,000 sq. meters. This move is expected to improve the business environment in key urban areas.
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Digital and Anti-Pilferage Measures: The policy emphasizes checking pilferage, encouraging online billing and e-payment methods, further improving transparency and accountability.
Notable Growth Since Policy Implementation
CIABC also took note of positive early outcomes:
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Liquor sales in Noida rose by 35% during the first quarter of the current financial year (April–June), touching ₹625 crore, up from ₹462 crore during the same period in 2024-25.
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Similar growth is being observed in other major districts such as Lucknow, Kanpur, and Ghaziabad.
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Based on current trends, the state is likely to surpass its excise revenue target of ₹63,000 crore for the year—₹13,000 crore more than the previous financial year.
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The state also saw the launch of its first fruit winery in Malihabad, known for its Dussehri mangoes, along with the start of guided vintner tours, marking a step forward in responsible tourism and local development.
CIABC Suggests Further Reforms for Future Excise Policies
While CIABC welcomed the policy and its results, it also shared suggestions to help further improve the business environment and promote exports:
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Ease export regulations by notifying maturation norms, relaxing labeling for export markets, and removing transportation fees.
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Allow manufacturers to set their own prices for products above ₹400 per 750 ml, encouraging open competition and dynamic pricing.
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Provide full pricing freedom to wine producers, who rely on grapes and fruits that are sensitive to climate conditions.
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Ensure equal access for premium Indian-made brands in premium vends, removing preferences given to foreign-made products.
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Allow pass-through of levies to consumers rather than requiring manufacturers to absorb them, especially those unrelated to manufacturing costs.
Industry Looks Forward to the Investors Summit
CIABC acknowledged that the Uttar Pradesh government has taken several positive steps to promote growth in the excise sector, increase transparency, and improve investor confidence. The association added that the upcoming Investors Summit on July 9 is a welcome initiative to build further engagement between the government and industry stakeholders.
“There is much for farmers, consumers, and businesses to be optimistic about. The industry is encouraged by the steps taken and looks forward to continued progress,” CIABC
