Lucknow, November 2026: In a significant development for U.P’s liquor industry and its farming community, the state’s Excise Department has granted the first-ever approval for the production of Extra Neutral Alcohol (ENA) from potatoes. The beneficiary is M/s Ghaziabad Organics Limited, a distillery unit located in village Bhojpur under Modinagar tehsil in Ghaziabad district.
The approval was communicated through an official letter issued by Deputy Secretary Dayaram, addressed to the Excise Commissioner in Prayagraj. Under the order, Ghaziabad Organics Limited has been permitted to manufacture potato-based ENA within its existing licensed annual capacity of 280 lakh litres. The company will not require a fresh licence or additional infrastructure clearance for this new feedstock, allowing it to begin production relatively quickly once operational arrangements are in place.
ENA is a highly rectified form of ethyl alcohol, typically distilled to a purity of 96% or above. It serves as the base spirit in the manufacture of vodka, gin, and Indian-made foreign liquor (IMFL). Conventionally, ENA in India has been produced primarily from molasses a by-product of sugarcane processing and to a lesser extent from grain. The introduction of potato as a feedstock marks a new chapter for UP’s distillery sector.
Pervez Bapuna Building India’s Alcohol Industry Through Innovation, Craftsmanship and Indian Identity
Tamil Nadu TASMAC Makes Digital Payments Mandatory for Liquor Purchases Above ₹1,000 from November 1U.P. is India’s largest potato-producing state, contributing nearly 30% of the country’s total annual output. The state regularly grapples with post-harvest surplus and price crashes that leave farmers in distress. By creating industrial demand for potato as a raw material for ENA, the state government hopes to offer farmers an additional procurement channel, thereby supporting price stability and reducing wastage.
Industry observers note that the move could also open the door for other distilleries in UP to seek similar approvals for potato-based production. The timing aligns with the state’s broader push to attract investment in agro-based industries and boost excise revenue, which has emerged as one of its largest sources of non-tax income.
If the pilot at Ghaziabad Organics proves commercially viable, potato ENA could diversify UP’s distillery feedstock mix significantly reducing dependence on molasses supply, which remains subject to seasonal variability and sugarcane production cycles.
Officials in the Excise Department confirmed the order is in line with existing policy provisions and does not require an amendment to the state’s excise rules. The department indicated it would monitor the initial production runs to assess quality, yield ratios, and regulatory compliance before considering broader expansion of the potato-ENA framework across the state.
About the Author
