Lucknow, April 28: The Uttar Pradesh excise department has reduced the licence fee for unsold retail liquor shops by another 5% in an effort to make these businesses more financially viable.
This is the third time the department has lowered the licence fee. During the 2025–26 financial year, a total of 27,995 liquor shops were operational across the state. However, 595 shops are still yet to be allotted and will now be offered in a fourth round of lottery.
These include 382 country liquor shops, 54 model shops, 24 composite shops, and 135 ‘bhaang’ (cannabis) shops. Many existing shop operators chose not to renew their licences because the renewal fee had been set at 107.5% of what they paid last year.
→ J&K Liquor Shops Rise Across Seven Excise Ranges Since 2021, RTI Data Shows→ Andhra Pradesh to Hold Draw of Lots for Unrenewed Liquor Shop Licences on September 30; Deadline for Renewal Set at September 21
An official explained that existing retailers were given the option to continue by renewing their licences with a 7.5% fee increase, with March 25 as the deadline. Around 25,617 shops—about 91.5%—were successfully renewed.
After that, three rounds of lottery were conducted for the remaining shops. The first round offered licences at 107.5% of last year’s fee, the second at 100%, and the third at 90%. Now, the fourth round will offer licences at 85% of last year’s fee.
Out of the 54 model shops still unallotted in the state, 23 are in Lucknow. Many retailers in the city have been reluctant to invest large sums—often running into crores—for these shops and are waiting for further fee reductions.
About the Author
