The state of Uttar Pradesh, with its progressive and growth-focused excise policies, has achieved a remarkable milestone by tripling its excise revenue in the past seven years. In the 2016-17 fiscal year, the state collected ₹14,273.42 crore in excise revenue, which has now surged to an impressive ₹45,570.39 crore for the 2023-24 fiscal year.
The government has set an ambitious target of reaching ₹50,000 crore in excise revenue, continuing its journey of economic progress. This growth has been supported by significant investments from UP distilleries, which have poured over ₹5,000 crore into capital expenditure projects to further boost the industry.
However, despite this growth, the excise industry is facing critical challenges. Key industry associations, including AIDA, UPDA, ISWAI, CIABC, and AIBA, have raised concerns about the urgent need to revise the Ex-Distillery Price (EDP) for Country Liquor (CL), Indian Made Foreign Liquor (IMFL), and Beer.
Industry Demands EDP Revision
The associations emphasize that raw material costs have risen significantly over the past four years, but the EDP has not been adjusted accordingly. This has led to financial strain across the sector, with stakeholders urging the government for immediate action.
A recent independent study conducted by a research agency, and submitted to the Excise Department, highlights that UP’s liquor prices remain among the lowest compared to neighboring states. The study underscores the need for price revisions to ensure the industry’s sustainability and competitiveness.
As UP continues its journey towards becoming a leader in excise revenue, addressing the industry’s pain points will be crucial to sustaining growth and fostering long-term economic stability.
