UP's Excise Model Draws National Attention as Six States Study Its Success Formula

Uttar Pradesh’s booming excise revenue and innovative liquor policy have caught the attention of six other Indian states, including Punjab and Karnataka, which have sent official teams to study the state’s excise system, according to Excise and Prohibition Minister Nitin Agrawal.

Speaking at the 'Excise Investors Summit' in Lucknow, Agrawal revealed that delegations from Odisha, Madhya Pradesh, Andhra Pradesh, Karnataka, Maharashtra, and Punjab visited UP to examine its revenue-boosting strategies, lottery-based retail allocation system, and the cutting-edge "Track and Trace" mechanism used to monitor liquor movement from distilleries to retailers.

“States were particularly interested in our revenue model and the transparent e-lottery system for retail licences,” Agrawal said.

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The impact of UP’s policy has been significant. Excise revenue jumped from ₹17,320 crore in 2017–18 to over ₹52,573 crore in 2024–25 — a threefold increase in just seven years. The department’s 2025–26 first-quarter performance has already reached 98.81% of its ₹14,400 crore target.

Excise Commissioner Adarsh Singh highlighted that UP’s consistent year-on-year revenue growth and fully transparent retail licensing were key aspects other states wish to replicate.

The Uttar Pradesh Excise Policy 2025–26, effective from April 1, introduced major reforms, including:

• Composite liquor shops replacing separate beer and foreign liquor outlets.

• E-lottery system for allotting liquor and bhang (cannabis) shops.

• Low-alcoholic bars in cities like Lucknow, Noida, Agra, and Ghaziabad.

• Retail vends and bars in IT/ITeS zones above 20,000 sq. metres.

• Liquor tasting permissions at breweries, wineries, and distilleries.

• Introduction of 90 ml IMFL packs in the regular category.

• New bar licence categories to prevent misuse.

The state has set an ambitious revenue target of ₹63,000 crore for 2025–26, bolstered by a focus on responsible tourism and retail innovation.

With other states showing keen interest, UP’s excise model could soon become a national template for excise reform and economic growth.

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