The Uttar Pradesh Excise Department has introduced an Excise Export Policy for the period 2026–27 to 2028–29, becoming the first state in the country to have a separate such policy.
The state Cabinet approved the policy on Wednesday. Excise Minister Nitin Agrawal said the Excise Export Policy is being introduced for the first time to promote products of state-based manufacturers for export.
Reacting to the development, UP Excise Commissioner Adarsh Singh said that the policy has been formulated to make the presence of the state felt abroad.
The Agricultural and Processed Food Products Export Development Authority (APEDA) congratulated the state government for introducing the export policy.
The policy has been introduced to achieve the following goals:
-Increase production of ethanol and other related products for export, using grains and fruit-based raw materials linked to local agriculture.
-To encourage industrial investment in the export of potable liquor, and by expanding allied sectors such as distilleries, packaging, logistics, and export services, to generate significant direct and indirect employment, thereby further strengthening the state’s economy.
-To increase the volume of potable liquor exports and strengthen the position of Uttar Pradesh in international markets.
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-To establish an important role for Uttar Pradesh in increasing India’s foreign exchange reserves.
Speaking to The Indian Express, Excise Commissioner Adarsh Singh shared that they had been mulling to accelerate the export of UP-based liquor as earlier they were not even able to meet the demand and supply within the state.
“But in the last two years, we have been able to meet the requirement of the supply in the state,” he said.
The APEDA of the Department of Commerce, Government of India, has always been pushing all the states to focus on promotion of export of local liquor brands, the commissioner added.
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Uttar Pradesh has a dismal share in export of liquor from India while states such as Maharashtra and Punjab lead in liquor export, Singh said. “We decided to formulate the export policy keeping in mind to make the presence of our state felt abroad with liquor brands manufactured here. To get a variety of alcohol/beverages manufactured here, we need to have big industries established here. With this policy, we are giving attractive incentives to such distilleries besides providing them with other facilities to set up the industry in UP,” Singh told The Indian Express.
“We were looking for beer manufacturers in UP and now they are setting up units here. Soon, such units are coming up in Farrukhabad and Unnao districts,” he informed.
Congratulating the state government, APEDA in a post on X stated: “APEDA appreciates and compliments the Government of Uttar Pradesh in launching a dedicated 3-year Excise Export Policy (2026–29), becoming the first state to adopt a comprehensive export-focused framework. The introduction of Uttar Pradesh’s standalone Excise Export Policy 2026–29 marks a significant milestone in strengthening state-led export promotion. APEDA solicits similar visionary initiatives from other states and UT administrations for promotion of ALCOBEV exports from India.”
Policy highlights
-Uttar Pradesh is the first state in the country to introduce a separate Excise Export Policy for three financial years.
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-To promote exports, under the Excise Export Policy, bottling fees, export pass fees, franchise fees, and special fees for exports equivalent to up to 25% of the approved production capacity have been reduced to the minimum level.
-The provisions related to brand registration and label approval for liquor brands meant for export have been relaxed, and the applicable fees have been reduced to the minimum level.
-For the export of molasses-based Extra Neutral Alcohol (ENA) to other states within the country, the export fee has been reduced to ₹0.50 per bulk litre.
-Provisions have been made to allow distilleries to undertake the production, testing (testing tavern), and retail sale of heritage liquor meant for export.
