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Lucknow: In a major policy shift, the Uttar Pradesh Cabinet has approved the excise policy for the financial year 2025-26. A key highlight of the new policy is that all liquor shops in the state will now be allotted through an e-lottery system, ensuring greater transparency in the process.

Announcing the decision at a press conference on Thursday, State Excise Minister Nitin Agarwal said that the policy, approved during a cabinet meeting on Wednesday evening, will regulate the management of desi liquor shops, composite shops, model shops, and bhang (cannabis) shops under the lottery system.

Key Changes in the Excise Policy

E-Lottery System for Liquor Shops

  • Each applicant can apply only once.
  • A maximum of two shops will be allotted per applicant.

Revised Processing Fees Based on Location
The government has categorized areas into five zones with different processing fees:

Category 1: Municipal corporation areas of Gautam Buddha Nagar, Ghaziabad, Lucknow, Agra, Varanasi, Prayagraj, Gorakhpur, and Kanpur, plus a 3 km radius around them.                                                                          

  • Desi liquor: ₹65,000                                                                                                          
  • Composite shops: ₹90,000                                                    
  • Model shops: ₹1 lakh                                                                                                 
  • Cannabis shops: ₹25,000                                                                                                                        

Category 2: Other metro areas within a 3 km radius (excluding those in Category 1).                                                                                                                                            

  • Processing fees: ₹60,000, ₹85,000, ₹90,000, and ₹25,000 respectively.                                                                 

Category 3: All municipal areas and their 3 km radius.                                                                                        

  • Processing fees: ₹50,000, ₹75,000, ₹80,000, and ₹25,000 respectively.                                                                                      

Category 4: Nagar Panchayat boundaries and 3 km perimeter.                                                                          

  • Processing fees: ₹45,000, ₹65,000, ₹70,000, and ₹25,000 respectively.                                                                                                 

Category 5: Rural areas.                                                                                                                                                                                 

  • Processing fees: ₹40,000, ₹55,000, ₹60,000, and ₹25,000 respectively.                                                 

New Bottle Sizes & Packaging Changes                                                                                         

  • Foreign liquor: 90ml bottles introduced in the regular category, while the premium segment will now offer both 60ml and 90ml bottles.
  • Country liquor: Now mandatory in tetra packs instead of glass bottles to improve safety and prevent adulteration.

Increased Minimum Guarantee Quota (MGQ) for Country Liquor

  • The MGQ has been raised by 10%, continuing last year’s trend.
  • The license fee per bulk liter has been increased from ₹254 to ₹260.

Boost for Fruit-Based Liquor Production

  • Farmers engaged in producing fruit-based liquor will benefit from dedicated liquor shops at every district headquarters.
  • Licensing fees for these shops have been set at ₹50,000 in divisional and district headquarters and ₹30,000 for other district locations.

The revised policy aims to increase transparency, boost government revenue, and support farmers engaged in fruit-based liquor production. With these changes, the state government hopes to streamline liquor sales while ensuring safety and fairness in the allocation process.

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