The Uttar Pradesh government has announced a marginal increase in retail liquor prices effective from April 1, 2026, as part of its new excise policy for the financial year 2026-27.
The decision is expected to generate an additional ₹1,500 crore in revenue for the state.
Country Liquor Price Increased by ₹5 Per Bottle
According to the new policy, the price of country-made liquor has been increased by just ₹5 per bottle, indicating a minimal burden on consumers.
Meanwhile, the prices of Indian Made Foreign Liquor (IMFL) have been raised in the range of ₹10 to ₹40 per bottle, depending on category and brand.
MRP Rationalisation and Wine Duty Changes
The government has also introduced changes in the Maximum Retail Price (MRP) formula for Indian-made wines and low-strength alcoholic beverages (LAB)/Ready-to-Drink (RTD) products.
Key changes include:
- Rationalisation of MRP calculation for wines and RTDs
- Reduction in excise duty on wines
- Additional excise duty imposed on fortified wines
These measures aim to streamline pricing while boosting revenue efficiency.
100 ml Pack Introduced in UPML
In a significant move, the state has introduced a 100 ml capacity pack in 42.8% V/V Uttar Pradesh Made Liquor (UPML) for 2026-27.
Additionally, the MRP of country liquor/UPML (except 25% V/V strength) will now be rounded off to the next multiple of ₹10, which is projected to generate approximately ₹1,500 crore in additional revenue.
Retail License Fees Increased
The excise policy also includes revisions in license fees:
- Minimum Guaranteed Revenue (MGR)/License fee for retail liquor shops increased by 7.5% for 2026-27
- License fee for Bhang outlets increased by 10%
These revisions are aimed at strengthening revenue collection.
Mandatory Stocking of Imported Liquor in Premium Shops
The government has made it mandatory for:
- Model Shops and Premium Model Shops in all Municipal Corporation areas and across Gautam Budh Nagar district
- To procure overseas imported liquor equivalent to minimum 5% of prescribed monthly MGR
- To stock IMFL equivalent to minimum 2% in premium and high-end clearance shops
- Similarly, all premium retail vends across the state must:
- Receive imported liquor equivalent to 5% of minimum MGR
- Stock IMFL equivalent to 2% in super-premium and high-end clearance outlets
Low-Alcohol Retail Vends and Bar Licenses Expanded
The policy allows approval of low alcoholic premium retail vend licenses for wine and LAB/RTD sales in:
- Gautam Buddha Nagar district
- All Municipal Corporation areas of Uttar Pradesh
Bar licences in Form FL-7(1) for beer, wine, RTD and low-alcohol beverages will be permitted in the districts of:
- Gautam Buddha Nagar
- Ghaziabad
- Agra
- Prayagraj
- Varanasi
- Lucknow
Excise Revenue Targets Revised
The state government has revised its excise revenue targets:
- Current fiscal target reduced from ₹63,000 crore to ₹60,000 crore
- Revenue collected till January 31 stands at approximately ₹44,000 crore
- Excise revenue target for FY 2026-27 increased to ₹71,278 crore
The revised targets reflect the government’s strategy of balancing controlled price increases with higher revenue mobilisation.
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