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UP Govt Approves 2025-26 Liquor Policy: Higher Fees, E-Lottery, and New ‘Composite Shops’

The Uttar Pradesh government, led by CM Yogi Adityanath, has introduced major reforms in its 2025-26 Excise Policy, with a focus on boosting revenue, streamlining liquor sales, and increasing transparency. The UP Cabinet recently approved the policy, which brings significant changes, including an e-lottery system for liquor shop allocations, increased license fees, and the merging of beer and foreign liquor outlets into ‘Composite Shops’.

 

Key Changes in the New Excise Policy

E-Lottery for Liquor Shops

 

The allocation of liquor shops will now be done through an e-lottery system, ensuring fair distribution and reducing corruption.

This move aims to prevent monopolies in liquor trade and encourage new entrants.

Introduction of ‘Composite Shops’

 

Beer and foreign liquor outlets will now be merged into single stores, called ‘Composite Shops’.

Consumers will no longer need to visit separate stores for these categories of liquor.

The government expects this change to increase convenience for customers and streamline retail operations.

Higher License Fees

 

The policy introduces increased fees for liquor shop licenses, bars, and wholesale distributors.

The hike aims to generate additional revenue for the state while maintaining strict regulatory control over alcohol sales.

Focus on Transparency and Revenue Growth

 

The new policy aligns with the state’s broader strategy of using digital mechanisms to make governance more transparent.

The government anticipates a significant rise in excise revenue, which is crucial for funding state infrastructure and welfare projects.

Impact on Liquor Industry and Consumers

The new Excise Policy 2025-26 will reshape liquor trade in Uttar Pradesh. While some retailers may face challenges due to higher fees, the e-lottery system is expected to give fair opportunities to new vendors. Consumers will benefit from the convenience of ‘Composite Shops’, reducing the need to visit multiple outlets for different types of liquor.

 

Government’s Vision

With these reforms, the Yogi Adityanath-led government aims to:

✅ Boost state revenue through higher excise collections.

✅ Ensure fair competition with an e-lottery system.

✅ Reduce illegal practices in liquor shop allocations.

✅ Improve consumer convenience with integrated stores.

 

Conclusion

The 2025-26 Uttar Pradesh Excise Policy marks a progressive shift in the state’s liquor trade regulations. By introducing digital allocation methods, combining retail outlets, and increasing license fees, the policy aims to streamline operations, enhance revenue collection, and bring more transparency to the industry. However, industry stakeholders will need to adapt to the new system to stay competitive in this evolving landscape.

 

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