The Yogi Adityanath-led Uttar Pradesh Government has finalized the Excise Policy for Financial Year 2026-27, bringing major clarity for country liquor (देशी मदिरा), composite shops, event bars, microbreweries, wine retail, and wholesale operators.

The new policy, effective from April 1, 2026, largely continues the structural reforms introduced in 2025-26 while strengthening compliance, digital monitoring, and revenue safeguards.

The state government is targeting excise revenue of around ₹60,000 crore, reflecting a strong growth push in the liquor and alcobev sector.

100% Aseptic Brick Packs to Continue for Country Liquor

In a significant continuation of last year’s reform, the state has maintained:

• Complete shift to aseptic brick packs
• No glass bottles allowed
• No alternative packaging permitted

All country liquor (CL) and U.P.M.L. will continue to be supplied only in aseptic brick packaging during 2026-27.

The Commissioner, Excise has been empowered to finalize:

• Border colours
• Colour combinations
• Approval of design modifications in brick packs

This move is aimed at preventing reuse, pilferage, and adulteration while strengthening product traceability.

New Country Liquor Categories & Strengths Finalized

The government has notified revised strength combinations and packaging norms:

No deviation from approved strengths and packaging sizes will be permitted.

Minimum Guaranteed Quantity (MGQ) Increased

The government has increased annual MGQ (36% v/v equivalent basis) compared to 2025-26:

• Category-1 → +4%
• Category-2 & 3 → +5%
• Category-4 → +6%
• Category-5 → +8%

Monthly Distribution Retained:

• Peak months (May, November, December) → 9.5%
• Lowest months (August–September) → 6.5%

New shops must adhere to prescribed minimum MGQ and should not adversely affect nearby vends.

License Fee & Privilege Fee Revised

Basic License Fee

• Fixed at ₹32 per bulk litre (BL) of annual MGQ
• Rounded up to next ₹1,000 multiple
• Applicable to new and mid-year shops as well

Retail Privilege Fee

• Increased to ₹273 per BL (36% strength basis)

Strict MGQ Compliance

• Shortfall in lifting monthly MGQ → Licensee must deposit equivalent privilege fee.
• Excess lifting in one month cannot be adjusted in next month.

MRP Rounding to Generate Additional Revenue

The state has introduced structured MRP rounding:

• All strengths (except 25%) → Rounded to next ₹10
• 25% strength → Rounded to next ₹5

The differential amount will be collected as additional privilege fee, boosting state revenue.

Brand Supply Cap Introduced

To prevent monopoly:

• One distillery’s brands (sheera + grain combined) cannot exceed 75% of a shop’s monthly MGQ
• Minimum 25% supply must be from other distilleries

Violation penalty:

• Double basic license fee (₹64 per BL)
• Legal action under Excise Act

Supply & Compliance Penalties

• Indented supply must be delivered within 3 working days
• Delay penalty: 0.5% of revenue value per day

Import fee on molasses-based country liquor retained at:

• ₹1 per alcohol litre

Bottling fee under CLB licenses fixed (example: 4 paise per 200 ml for CLB-1 sheera-based).

Composite Shops (FL-5DB): MGR Increased by 7.5%

For composite shops selling Foreign Liquor + Beer:

• Minimum Guaranteed Revenue (MGR) increased by 7.5%
• Rounded to next ₹5,000

License fee-1 (FL) and License fee-2 (Beer) recalculated accordingly.

Eligible shops may convert into Model Shops (on-premise drinking) by paying additional sipping fee.

Beer Sale Allowed at Select Country Liquor Shops

Select country liquor vends (where no composite/model shop exists within 3 km) can now obtain:

CL-5CC License

• Separate Beer MGR fixed at 10% of district average composite shop beer MGR
• Additional License Fee-3 applicable

Beer Specific:-

1. No change in Consideration fee (Pratifal fee) for fixation of Beer MRP.
2. No Change in Special Consideration fee ( Vishesh Partifal fee) on strong & mild beer. 3. IMFL 180 ml Special Consideration fee (Vishesh Pratifal fee) increased by ₹ 10/- , all segments / categories.
4. Beer Brand & Label registration fee – No Change.
5. Import duty – No change
6. Shelf Life – No change / 9 months
7. Beer franchisee fee for sale in UP – No change (₹0.80/BL)
8. BWFL -2B Beer licence fee is increased by ₹1.00 Lac ( ₹17.50 lac to ₹18.50 lac)

Event Bar License Fees (Temporary)

Major revisions for event-based bar licenses:

International/IPL Events

• ₹1,50,000 per counter (12 hours)

National/State Events

• ₹75,000 per counter

Paid Entry Entertainment Shows

Municipal Corporations:

• ₹50,000 (up to 2,000 people)
• ₹2,00,000 (10,001+ attendees)

Elsewhere:

• ₹20,000 to ₹1,00,000

Additional counter:

• 50% of base fee

Penalty for out-of-state liquor:

• ₹1,00,000 fine + 10x duty + legal action

Microbrewery & Bar Reforms

• Renewal allowed up to 3 years
• ₹1 lakh discount for combined applications (first year)
• Growler sales allowed up to 5 litres
• Additional premises counter fee: 25% or ₹2.5 lakh (whichever higher)
• Bars must:
• Sell sealed beer/wine/LAB only (no sealed hard liquor bottles)
• Ensure peg sales yield at least 20% higher than bottle MRP

Wine & Low Alcohol Beverage (LAB) Updates

V-5 Retail License

• Max 2 per district
• ₹50,000 (Municipal areas)
• ₹30,000 (Elsewhere)
• No MGR

Indian Wine Duty:

• ₹4 per bulk litre

Imported Wine:

• 40–50% of proposed MRP as fee

Low Alcohol Bar License (FL-7(1)):

• ₹4 lakh annual fee in select districts

Digital Compliance & Surveillance

• Mandatory digital payment options
• Two CCTV cameras compulsory
• ₹2,000 penalty for non-functional CCTV
• Tamper-proof caps mandatory for IMFL
• Geo-fencing of retail shops
• QR-based track & trace system strengthened

Stock Rollover Rules for 2025-26

• Stock declaration by April 1, 2026 (12 noon)
• 1% variance allowed
• Unsold CL stock post-renewal to be destroyed (not adjustable in MGQ)
• Old foreign liquor/beer/wine stock must comply with new MRP rules

Revenue Target: ₹60,000 Crore

The 2026-27 policy emphasizes:

• Revenue optimization
• Anti-adulteration measures
• Digital enforcement
• Ease of doing business
• Industrial expansion
• Export promotion

Industry experts believe the policy balances continuity with tighter compliance, particularly in country liquor operations and composite shop structures.

Read Full Policy Here

Editorial

The Aabkari(Abkari) Times magazine occupies a unique niche in the Indian media landscape. As the only Hindi monthly magazine dedicated to alcohol, liquor, excise, and allied industries, it caters to a specific audience with a specialized knowledge base.