Lucknow: Uttar Pradesh is rapidly emerging as a major liquor export hub, with the state's alcoholic beverage exports rising sharply after the UP government introduced a dedicated three-year excise export policy aimed at making locally manufactured liquor more competitive in overseas markets.
Exports witness sharp rise
The liquor exports from Uttar Pradesh rose 84.5% year-on-year, compared with a 6.3% increase in India's overall exports. The state's share in India's liquor exports increased from 8.1% to 14%, taking Uttar Pradesh from fifth to third position among exporting states.
The more comprehensive April-June data show that the momentum continued into the first quarter of 2026-27. India exported alcoholic beverages worth Rs 965 crore during the three months, of which Uttar Pradesh accounted for Rs 122.3 crore, giving the state nearly 13% of the national total. In volume terms, India exported about 8.13 crore litres of alcoholic beverages during the quarter, with Uttar Pradesh accounting for nearly 1.05 crore litres.
The figures mark a significant shift for a state that traditionally ranked seventh or eighth in liquor exports. Uttar Pradesh is now behind only Maharashtra and Punjab.
Policy boosts overseas trade
The state's April-May exports stood at $8.6 million, compared with $4.66 million in the corresponding period last year. India's total exports during the period rose to $61.5 million from $57.8 million. Uttar Pradesh's increase of $3.94 million was higher than the country's overall increase of $3.65 million.
The sharp increase followed the implementation of Uttar Pradesh's Excise Export Policy 2026-29 from April 1. The government has described it as the first dedicated three-year excise export policy introduced by an Indian state.
The policy's central objective is to reduce the regulatory costs associated with exporting liquor rather than provide direct financial assistance. The government has abolished franchise fees on foreign liquor, beer and wine and waived brand registration fees.
Reduced costs for exporters
For Indian-made foreign liquor and wine, the bottling fee for a 2,000 ml bottle meant for export outside the country ranges from Rs 0.32 to Rs 4.11, compared with Rs 0.79 to Rs 4.11 for domestic movement. For 1,000 ml bottles, the fee for overseas exports ranges from Rs 0.16 to Rs 2.05, compared with Rs 0.40 to Rs 2.05 for domestic movement.
Different fee slabs have also been prescribed for bottles ranging from 750 ml to 60 ml.
The policy provides similar relief to beer. For a 50-litre keg of draught beer, the bottling fee for overseas exports ranges from Rs 3.10 to Rs 36.23, compared with Rs 7.55 to Rs 36.23 for domestic movement.
New investments in state
The policy is already translating into fresh investment across the state. United Breweries is setting up a new unit in Unnao, while Mount Everest Breweries is establishing a unit in Hardoi. Woodpecker GreenAgri Nutrients has set up a unit in Farrukhabad.
Allied Blenders and Distillers has revived a closed unit in Moradabad. Kian Distillery, which established an ethanol plant in Gorakhpur about a year ago, has applied to set up both a beverage distillery and a brewery.
Also Watch:
Industry linkages highlighted
Excise Commissioner Adarsh Singh said the industry's backward linkages were connected with agriculture, while its forward linkages included glass, packaging, caps, labels, storage, transport and logistics.
"The backward linkages of this sector are connected with agricultural produce such as sugarcane, molasses and grains, while the forward linkages include industries such as glass, packaging, caps, labeling, storage and transportation," Singh said.
