Rising liquor sales in Uttar Pradesh have led to a sharp increase in excise revenue, turning the sector into one of the state’s strongest contributors to the treasury over the past few years.
According to official data, excise revenue has jumped from about ₹23,000 crore in 2018–19 to a target of ₹63,000 crore for 2025–26. Of this, nearly ₹40,000 crore has already been collected. The state government is now considering an even higher revenue target of around ₹68,000 crore for the next financial year, 2026–27.
The surge in revenue has gone hand in hand with higher liquor sales. In 2022–23, Uttar Pradesh sold 77.39 crore litres of country liquor, 27.03 crore bottles of foreign liquor, and 70.72 crore cans of beer. By 2024–25, these figures rose to 88.53 crore litres of country liquor, 30.87 crore bottles of foreign liquor, and 78.59 crore cans of beer.
For the current financial year 2025–26, sales between April and November alone stood at 61.90 crore litres of country liquor, 27.95 crore bottles of foreign liquor, and 71.17 crore cans of beer. With four months of data still pending, total sales are expected to surpass the 2022–23 levels.
The excise sector has also seen rapid expansion in infrastructure and investment. The number of distilleries in the state has increased from 22 in 2022 to 100 currently. In recent years, the sector has attracted investment commitments worth nearly ₹30,000 crore. The government is also planning to focus more on exporting liquor brands manufactured in the state.
Excise Minister Nitin Agarwal said the department’s revenue has been growing by around 12 per cent every year since 2022. He credited this growth to strict action against illegal liquor, opening the market to international players, breaking cartels, and bringing greater transparency to the system.
As part of the 2025–26 excise policy, the state reintroduced an e-lottery system for allotting retail liquor shops after nearly seven years. The policy also encourages wine production using local fruits and aims to promote tourism through local wineries.
Agarwal said earlier cartels controlled brand sales in the state, limiting consumer choice. “That system has been dismantled. Today, many brands are available in Uttar Pradesh that are not even sold in Delhi,” he said, adding that about 40 per cent of current shop allottees are first-time entrants to the trade.
He also noted that the track-and-trace system has helped curb illegal liquor by ensuring every bottle is tracked from the distillery to the retail outlet. While exports of liquor brands made in the state remain low, the government plans to focus on expanding this area.
The new Uttar Pradesh Excise Policy for 2026–27 is currently being prepared and may be presented in the cabinet later this month. The proposed revenue target under the new policy is expected to be around
