Uttar Pradesh Unveils India’s First Dedicated Liquor Export Policy to Push Global Market Presence

In a move aimed at taking locally manufactured alcoholic beverages beyond domestic shelves, the Uttar Pradesh government has approved a three-year Excise Export Policy (2026–27 to 2028–29), becoming the first state in the country to introduce a separate framework focused exclusively on liquor exports.

The state Cabinet cleared the proposal earlier this week. Excise Minister Nitin Agrawal said the initiative is intended to help manufacturers based in Uttar Pradesh expand into overseas markets, while Excise Commissioner Adarsh Singh noted that the policy seeks to give the state’s brands an international footprint.

The Agricultural and Processed Food Products Export Development Authority (APEDA) welcomed the step and encouraged similar efforts by other states.

Objectives behind the policy

Authorities say the new framework aims to:

• Boost production of ethanol and allied products using locally grown grains and fruits for export
• Encourage investment in potable liquor manufacturing and related sectors such as distillation, packaging, logistics, and export service.s
• Increase exports of alcoholic beverages from the state and strengthen its share in global markets
• Contribute to India’s foreign exchange earnings.ngs

Officials added that until recently, the state struggled to meet internal demand, but improved production capacity over the last two years has opened the door for exports.

Incentives and relaxations

To attract industry players, the policy offers several concessions:

• Major reductions in bottling, export pass, franc,hise, and special export fees for production up to 25% of approved capacity
• Simplified brand registration and label approval norms with lower charges
• Export fee for molasses-based Extra Neutral Alcohol (ENA) to other states cut to ₹0.50 per bulk litre
• Permission for distilleries to produce, test, and sell heritage liquor intended for export

The government hopes these measures will encourage large distilleries and beverage companies to set up units in the state. Officials said new beer manufacturing facilities are already being planned in districts such as Farrukhabad and Unnao.

Competing with established exporters

Currently, states like Maharashtra and Punjab dominate India’s liquor export sector, while Uttar Pradesh holds only a small share.

The new policy is designed to bridge that gap and position the state as a notable player in the international beverage trade.

APEDA described the initiative as a significant milestone in state-led export promotion and called upon other states and Union Territories to adopt similar strategies to strengthen India’s alco-beverage exports.

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