Uttar Pradesh is set to undergo a major overhaul of its liquor policy. According to reports on recent cabinet decisions, the state is planning a comprehensive restructuring of the existing framework. Now, licenses will be granted through a lottery system. Additionally, in cities, foreign liquor and beer will be available at the same shop, while in rural areas, country liquor, foreign liquor, and beer will all be sold from a single outlet. Liquor prices will see a drastic increase from April.
What Are The New Decisions?
Yogi’s government has increased the liquor license fee by 10%. Under the new policy, all types of liquor—country-made, foreign liquor, and beer—will now be available at the same location. These liquor shop licenses will be issued through an e-lottery system. Furthermore, the renewal of old licenses has been discontinued. In a cabinet meeting chaired by CM Yogi Adityanath, the new excise policy for 2025-26 has been approved. The government will soon reallocate liquor shop licenses through a lottery system.
Lottery System For Liquor Shops
There has been no lottery for liquor shops in the state for the past seven years. Since then, the only procedure the government followed was to renew license of the old shops. According to the media reports, the government will now conduct a fresh lottery. Like Rajasthan, Uttarakhand, and other states, a decision has been made to allocate composite liquor shops in Uttar Pradesh.
Shop owners will be required to maintain 10% more liquor stock than their monthly revenue from the previous year and ensure its consumption. Through the new excise policy, the state government has set a revenue target of ₹58,000 crore from liquor sales, which is ₹4,000 crore more than the previous year.
The annual renewal fee for premium retail liquor shop licenses will be ₹25 lakh. Moreover, no individual, firm, or company will be allowed to hold more than two licenses.
Here Are the License Fees for the Shops:
In the cabinet meeting, the license fees for liquor shops have also been fixed. In areas like Gautam Buddha Nagar Development Authority, Ghaziabad, Agra, Varanasi, Prayagraj, Gorakhpur, Kanpur, and Lucknow Municipal Corporations, the license fees for a liquor shop will be ₹65,000 for regular shops.
- ₹90,000 for composite shops (selling multiple types of liquor)
- ₹1,00,000 for model shops (premium or specially designated shops)
Outside the municipal limits of all other corporations (except Category 1 areas), within 3 km Radius:
- ₹60,000 for country liquor shop
- ₹85,000 for composite shops
- ₹90,000 for model shops
In Nagar Panchayats (Smaller Urban Areas)
- ₹50,000 for country liquor shops
- ₹65,000 for composite shops
- ₹70,000 for model shops
In rural areas:
₹40,000 for country liquor license
₹55,000 for composite shops
₹60,000 for model shops
These fees are set based on the type of liquor and location, with higher fees for more urbanized or premium outlets.
In the Uttar Pradesh Yogi Cabinet meeting, approval was granted for 12 proposals, including the excise policy. The UP government has set a revenue target of approximately ₹58,000 crore from liquor sales.
Liquor Prices Will Rise From April
Due to changes in the license policy and fee hikes, liquor enthusiasts in Uttar Pradesh may face a big blow. It is being speculated that this policy could lead to an increase in liquor prices.
