Liquor Sales Boost State Finances as Uttar Pradesh Excise Revenue Heads Toward ₹68,000 Crore Target

Lucknow, January 9, 2026 Uttar Pradesh’s excise sector is witnessing steady and strong growth, turning liquor sales into one of the state’s most reliable sources of revenue. With rising consumption, stricter regulation, and policy reforms, the excise department’s contribution to the state treasury has increased sharply over the past few years. Officials now expect the revenue target for the financial year 2026–27 to be close to ₹68,000 crore. According to official data, excise revenue in Uttar Pradesh has grown from around ₹23,000 crore in 2018–19 to a target of ₹63,000 crore in 2025–26. Of this amount, nearly ₹49,000 crore has already been collected so far in the current financial year. With a few months still remaining, the final figures are expected to rise further, strengthening confidence in an even higher target for the next fiscal year. This growth has gone hand in hand with an increase in liquor sales across the state. Consumption of country liquor, foreign liquor, and beer has shown a clear upward trend over recent years. In 2022–23, sales stood at 77.39 crore litres of country liquor, 27.03 crore bottles of foreign liquor, and 70.72 crore cans of beer. By 2024–25, these numbers rose to 88.53 crore litres of country liquor, 30.87 crore bottles of foreign liquor, and 78.59 crore cans of beer. The trend has continued in the current financial year as well. Between April and November 2025, the state recorded sales of 61.90 crore litres of country liquor, 27.95 crore bottles of foreign liquor, and 71.17 crore cans of beer. With sales data from December 2025 to March 2026 yet to be added, officials believe total figures for 2025–26 will comfortably cross those recorded in 2022–23. Several structural changes in the excise sector have supported this rise. The number of distilleries operating in Uttar Pradesh has increased significantly, growing from just 22 in 2022 to about 100 at present. The sector has also attracted memorandums of understanding worth nearly ₹30,000 crore in recent years, pointing to growing investor interest in alcohol manufacturing within the state. Excise minister Nitin Agarwal said on Thursday that the department’s revenue has been growing by roughly 12% every year since 2022. He credited this steady rise to a series of policy decisions taken by the state government. These include a strong crackdown on illicit liquor, opening the market to international players, breaking long-standing cartels, and ensuring transparency in the allotment of retail liquor shops. The excise policy for 2025–26 reintroduced the e-lottery system for allotting retail shops after a gap of nearly seven years. This move helped reduce monopoly control and allowed new entrants into the trade. According to Agarwal, around 40% of shop allottees this time were first-time participants, reflecting a more open and competitive system. The policy also encouraged wine production using locally grown fruits and aimed to promote tourism through local wineries. Alongside this, the state introduced a track-and-trace system to monitor every bottle of liquor, from the distillery to the retail outlet. This system has helped curb the manufacture and sale of illegal liquor and improved accountability across the supply chain. Another area the department now wants to strengthen is exports. Agarwal admitted that the export of liquor brands manufactured in Uttar Pradesh has so far remained limited. The government plans to focus more on promoting these brands outside the state and even internationally. The new excise policy for 2026–27 is currently being prepared and may be placed before the cabinet later this month. If approved, it is expected to set a revenue target of around ₹68,000 crore, marking yet another milestone for the excise department and reinforcing its growing role in supporting Uttar Pradesh’s finances. Liquor Sales Boost State Finances as Uttar Pradesh Excise Revenue Heads Toward ₹68,000 Crore Target Uttar Pradesh’s excise department is raising a toast to strong numbers. Liquor sales across the state have grown steadily, and with them, the department’s contribution to the state treasury. From ₹23,000 crore in 2018–19, excise revenue has climbed sharply, with a target of ₹63,000 crore set for 2025–26. So far, about ₹49,000 crore has already been collected, and officials now expect the next financial year’s target to touch around ₹68,000 crore. Sales of country liquor, foreign liquor, and beer have all gone up over the years. In 2024–25, the state sold over 88 crore litres of country liquor, nearly 31 crore bottles of foreign liquor, and close to 79 crore cans of beer. The current year is also on track to beat earlier records, with several months of data still to come. The growth is backed by major policy changes. The number of distilleries has risen from 22 in 2022 to 100, and the sector has seen investments worth ₹30,000 crore. The government credits stricter checks on illegal liquor, transparent shop allotments, and the return of the e-lottery system for retail shops. A new excise policy is now being prepared, aiming to keep the momentum going.