The Uttar Pradesh Cabinet has approved the excise policy for the financial year 2025-26, introducing an e-lottery system for liquor and ‘Bhang’ (cannabis) shop allocations. The policy also includes the introduction of composite shops, merging separate beer and foreign liquor outlets into a single unit.
Chief Minister Yogi Adityanath chaired the cabinet meeting on Wednesday night, where the approval for the policy was granted.
Excise Minister Nitin Agarwal said the government has introduced 90ml bottles in the regular category of foreign liquor. In the premium segment, 60ml and 90ml bottles will now be available. He also announced that country liquor, previously sold in glass bottles, will now be mandatorily packaged in tetra packs to prevent adulteration.
“For the first time in seven years, all country liquor shops, composite shops, model shops, and cannabis shops in the state will be allocated through an e-lottery system instead of the renewal process followed earlier,” Agarwal told reporters on Thursday.
Under the new system, an applicant can submit only one application, and no individual will be allotted more than two shops across the state.
MAIN PROVISIONS OF THE EXCISE POLICY 2025-26
SHOP ALLOCATION
- Country liquor shops, composite shops, model shops, and cannabis retail shops will be allocated through an e-lottery system.
- No individual will be allotted more than two shops in the state.
CATEGORIES OF COUNTRY LIQUOR
Two categories of country liquor are proposed for 2025-26:
- Molasses-based ENA with caramel, 36% v/v (masala), in 200ml aseptic brick packs.
- Molasses-based ENA with food colour, 25% v/v (flavoured), in 200ml aseptic brick packs.
LICENCE FEES AND MINIMUM GUARANTEED QUANTITY (MGQ)
- The MGQ for country liquor shops will increase by 10% over the rationalised total annual MGQ of 2024-25.
- The basic licence fee for country liquor retail shops will be Rs 32 per bulk litre, based on the annual MGQ.
- The fee for 36% country liquor will increase from Rs 254 per bulk litre to Rs 260 per bulk litre.
OTHER PROVISIONS
- The supply of country liquor and UPML will be entirely in aseptic brick packs.
- Composite shops will be introduced for the retail sale of foreign liquor, beer, wine, and LAB.
- No additional licence fee will be charged for the sale of foreign liquor or beer beyond the fixed MGQ in the financial year 2025-26.
