Uttar Pradesh
Uttar Pradesh Unveils First-Ever Excise Export Policy 2026-29
- 13 Feb 2026
- 3 min read
Why in News?
On 13 February 2026, the Government of Uttar Pradesh (UP) approved a dedicated Excise Export Policy for the period 2026–27 to 2028–29, becoming the first state in India to frame a separate export-oriented policy for its excise ecosystem.
Key Points
- Aim: The move aims to scale up liquor and ethanol exports, enhance global presence of UP-made brands, attract investment and boost socio-economic gains.
- Objectives: The Excise Export Policy has been formulated with the following primary goals:
- Promote Exports: Increase production and export of ethanol and other alcohol-related products using grain and fruit-based raw materials, leveraging the state’s strong agricultural base.
- Industrial Development: Foster investment in distilleries, packaging, logistics and allied sectors, thereby strengthening the manufacturing ecosystem and creating direct and indirect employment.
- Major Features of the Policy:The policy includes a set of measures to make exports competitive and incentive-driven:
- Reduction in Fees: Rates for bottling charges, export pass fees, franchise fees, and special fees have been reduced to the minimum level for exports, equivalent to 25% of the beverage capacity.
- Export Duty Cut: The export duty on molasses-based Extra Neutral Alcohol (ENA) to other states has been slashed to ₹0.50 per bulk litre.
- Simplified Compliance: Brand registration and label approval processes for export-oriented liquor have been relaxed and fees significantly reduced.
- Heritage & Niche Markets: For the first time, provisions have been made for distilleries to manufacture heritage wines specifically for export, alongside the allowance of tasting taverns.
- Duration: This is the first time a separate excise export policy has been introduced for a three-year term (2026-29), providing long-term regulatory stability to investors.
- Significance: UP has set a precedent among Indian states by adopting an excise export policy focused on foreign and inter-state markets.
- Agricultural Linkages: By linking raw materials like grains and fruits to ethanol and liquor exports, the policy strengthens agro-industrial value chains, benefiting farmers and processors alike.
