The Uttar Pradesh government has introduced a three-year Excise Export Policy for 2026-27 to 2028-29, marking a shift in the state’s excise strategy towards manufacturing, investment, employment and international exports. The framework is being implemented alongside the annual UP Excise Policy 2026-27, creating separate but complementary approaches for the domestic liquor market and export-oriented production.
Excise remains a major source of state revenue, but the new export framework seeks to expand the sector beyond domestic liquor sales. The policy focuses on increasing exports of ethanol, Extra Neutral Alcohol (ENA), potable liquor and alcoholic beverages, including whisky, vodka, gin, rum, brandy, country liquor, wine and beer manufactured in Uttar Pradesh. The move is also intended to connect the state’s agricultural resources, particularly sugarcane and grain, with value-added distilling and beverage manufacturing.
A key feature of the UP Excise Export Policy 2026-29 is the reduction of financial and regulatory costs for export-oriented production. For exports equivalent to up to 25% of approved production capacity, several charges, including bottling fees, export pass fees, franchise fees and special fees, have been reduced or removed under the framework. Brand registration and label approval procedures for export-focused products have also been rationalised.
The policy also aims to make ENA exports from Uttar Pradesh more competitive. According to the policy details reported by The Times of India, the export fee for molasses-based ENA supplied to other states has been reduced to ₹0.50 per bulk litre, while grain-based ENA attracts an export fee of ₹1 per bulk litre.
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The three-year policy period is intended to provide greater regulatory visibility to distilleries, breweries, bottling units and other businesses planning investments in production capacity and export infrastructure. Export-oriented growth could also create demand across packaging, warehousing, logistics, transportation, testing and allied manufacturing sectors.
The policy comes as Uttar Pradesh’s excise exports have already shown strong growth. The state recorded a 45.4% increase in excise exports in the first quarter of FY2026-27, while another report put the rise in excise export volume at 163% year-on-year for the quarter.
The broader objective is to position Uttar Pradesh as a larger manufacturing and export base for alcoholic beverages and ethanol, while retaining the revenue, regulatory and enforcement functions of the excise department. The initiative also aligns with the state’s wider Export Promotion Policy 2025-30, which targets an increase in overall exports and greater integration of Uttar Pradesh businesses with international markets.
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