UP Cabinet approves excise policy FY 2025-26: Liquor shop allocation to shift from renewal to e-lottery system

The Chief Minister Yogi Adityanath-led Uttar Pradesh Cabinet has approved the excise policy for the 2025-26 financial year, introducing several key changes, including the implementation of an e-lottery system for allocating liquor and 'bhang' (cannabis) shops.  

The policy, cleared at a late-night meeting chaired by Adityanath on Wednesday, marks the first instance in seven years where all country liquor shops, composite shops, model shops, and cannabis shops will be allocated through e-lottery instead of the previous renewal system, Excise Minister Nitin Agarwal said on Thursday.  

E-lottery system and composite shops

Agarwal stated that under the new system, an applicant can submit only one application, with a cap of two shops per individual across the state. On the introduction of composite shops, he said consumers would now be able to buy all types of alcoholic beverages from a single outlet. If an existing beer and foreign liquor shop are located adjacent to each other, they will be merged into one.  

Revised processing fees

The government has divided processing fees into five categories based on location:  

- Category 1: Gautam Buddh Nagar, Ghaziabad, Lucknow, Agra, Varanasi, Prayagraj, Gorakhpur, and Kanpur, including a 3-km radius of their municipal limits. Fees: Rs 65,000 for country liquor shops, Rs 90,000 for composite shops, Rs 1 lakh for model shops, and Rs 25,000 for cannabis shops.  
- Category 2: Large cities beyond Category 1, plus a 3-km surrounding area. Fees: Rs 60,000 (country liquor), Rs 85,000 (composite), Rs 90,000 (model), Rs 25,000 (cannabis).  
- Category 3: Municipal areas and a 3-km radius. Fees: Rs 50,000 (country liquor), Rs 75,000 (composite), Rs 80,000 (model), Rs 25,000 (cannabis).  
- Category 4: Nagar Panchayat areas and a 3-km radius. Fees: Rs 45,000 (country liquor), Rs 65,000 (composite), Rs 70,000 (model), Rs 25,000 (cannabis).  
- Category 5: Rural areas. Fees: Rs 40,000 (country liquor), Rs 55,000 (composite), Rs 60,000 (model), Rs 25,000 (cannabis).
  
The operating hours for liquor shops will remain unchanged from 10 am to 10 pm. In terms of packaging and bottle sizes, 90ml bottles have been introduced in the regular foreign liquor category, while the premium segment will now offer both 60ml and 90ml bottles. To enhance safety and prevent adulteration, country liquor, which was previously sold in glass bottles, will now be mandatorily packaged in tetra packs. Additionally, the Minimum Guarantee Quota (MGQ) for country liquor has been increased by 10 per cent, and the licence fee per bulk litre has been raised from Rs 254 to Rs 260.

Additionally, to promote farmers engaged in fruit-based liquor production, the government will set up dedicated liquor shops at district headquarters. The licence fee has been set at Rs 50,000 for divisional and district headquarters and Rs 30,000 for other district locations.

(With PTI Inputs)