Lucknow, August 13: Under the leadership of Chief Minister Yogi Adityanath, Uttar Pradesh has taken steps towards setting a new benchmark in the export sector. The state has become the first state in the country to implement a dedicated three-year Excise Export Policy (2026-29) for exports. Positive results have emerged within the first two months of the policy, which came into effect on April 1, 2026.
In April-May 2026, exports from the state increased by 84.5 percent, while the country's overall exports increased by 6.3 percent. Uttar Pradesh's share in national exports increased from 8.1 percent to 14 percent, and the state moved from fifth to third position.
In April-May 2026, total exports from the country stood at 6.15 crore US dollars, of which Uttar Pradesh's contribution was 86 lakh dollars. During the same period last year, the country's exports stood at 5.78 crore dollars, and the state's contribution was 46.6 lakh dollars. During this period, the country's exports increased by 36.5 lakh dollars, while Uttar Pradesh alone registered an increase of 39.4 lakh dollars. An export of 25,000 quintals of molasses was also made from Basti, generating foreign exchange worth 5,00,000 US dollars.
Molasses falls under a different tariff classification; hence, this earning is not included in the above figures and is in addition to them. Importantly, the state did not provide any financial assistance or grant for this, but rationalized the regulatory fees. A track-and-trace system has been implemented on every export bottle. APEDA has set a national export target of around one billion US dollars for this sector, and Uttar Pradesh is continuously increasing its contribution.
The three-year stability of the policy has increased confidence in the industry. United Breweries is setting up a new unit in Unnao and Mount Everest Breweries is establishing a new unit in Hardoi. Woodpecker GreenAgri Nutrients has established a unit in Farrukhabad. Allied Blenders and Distillers has revived the closed unit in Moradabad. Kian Distillery, which was established in Gorakhpur about a year ago for ethanol production, has applied for setting up both a beverage distillery and a brewery.
According to departmental data, Radico Khaitan is shifting export production from other states to its Sitapur and Rampur plants. The site selection for another international company is in the final stage, while several existing distilleries are expanding their capacities.
Excise and Prohibition State Minister (Independent Charge) Nitin Agrawal stated, "Farmers in the state are receiving a significant benefit from this policy. With the increase in ENA production, demand for molasses from sugar mills has increased, providing indirect benefits to sugarcane farmers. At the same time, increased production in grain-based distilleries has also led to an increase in the purchase of grains."
He added, in other words, along with the increase in exports, production in the state's industrial units, procurement from farmers and employment opportunities for the youth are also increasing. The policy also contains strict provisions concerning farmers' interests. Any distillery or its owner against whom a recovery certificate is effective for sugarcane price payment or excise dues at any other unit or sugar mill will not receive any benefit under the policy. This has directly linked export incentives with payments to farmers.
Excise Commissioner Dr. Adarsh Singh stated, "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. Between April and July 2026, units in the state sent 1.64 crore more bottles to other states, which is 45.7 percent higher than during the same period last year. This increase has come not from a reduction in domestic supplies, but from an increase in total production."
A task force constituted by the Union Ministry of Food Processing Industries is preparing an ideal export policy for all states. APEDA and the excise departments of various states are part of it. At the task force meeting, Uttar Pradesh's policy was appreciated and described as a useful framework for other states, and directions were given to incorporate the state's experiences into the national model policy.
In this way, the Yogi government's policy has laid a strong foundation towards giving Uttar Pradesh a new identity in the export sector by bringing together farmers' interests, investment, employment and foreign exchange earnings.
