Lucknow: The Uttar Pradesh government has reduced the licence fee for retail liquor shops by 20% for the 2026-27 financial year in an effort to improve the commercial viability of unsold vends and attract more applicants in the ongoing allotment process.
The excise department is set to conduct the fifth phase of lottery allotments for 660 liquor shops across the state on May 29. Interested applicants can submit their documents till May 25, officials said.
According to a report by The Times of India, the state government is also considering a proposal to add nearly 400 more liquor shops in the coming months to cater to expanding urban and semi-urban populations, particularly in developing areas on city outskirts.
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The move comes as the Uttar Pradesh excise department targets revenue collection of ₹71,278 crore during the current fiscal year. Officials believe that lowering licence fees will encourage greater participation from traders and help operationalise shops that remained vacant due to poor financial returns.
Last year, Uttar Pradesh had over 27,300 retail liquor outlets, including country liquor, beer, foreign liquor and composite shops. However, many vendors reportedly chose not to renew licences because of declining profitability in certain locations. So far, nearly 27,000 licences have been issued for the current cycle.
U.P Excise Commissioner Dr. Adarsh Singh said “The fifth phase of the lottery draw would be carried out on May 29 across the state. Details of available shops have been floated by district magistrates and the ones interested have time to get their documents prepared till May 25 to apply for the draw.”
Meanwhile, liquor traders in the state have sought relaxation in shop operating hours during the ongoing summer season. Representatives of the liquor sellers’ welfare association recently met the excise minister and requested permission to keep shops open till 11 pm instead of the current 10 pm deadline.
Association spokesperson Devesh Jaiswal said extreme heat conditions have impacted daytime sales, with customer movement increasing mainly during evening hours. Traders also discussed issues related to country liquor stock management during the meeting.
In Lucknow, 104 liquor shops — including 55 country liquor shops, 24 model shops and 24 composite shops — will be included in the May 29 draw. Licence fees for model shops range from ₹30 lakh in Wazirganj to ₹1.62 crore in Gomtinagar, while composite shop fees vary from ₹3.15 lakh in Kakori to ₹38 lakh in Madehganj.
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