The state of Uttar Pradesh will see a decrease in the cost of domestic liquor as a result of the New Excise Policy’s adoption, but the government coffers will also benefit. Senthil Pandian C, the State Excise Commissioner, explained the new policy by stating that just four kinds of domestically produced liquor would now exist in the state, replacing the previous many.
There used to be nine distinct kinds of domestically produced liquor, each with a different price. He said that the primary motivation for the liquor price reduction in Uttar Pradesh is to support grain alcohol. He said that as a result, the state is no longer dependent on other states, and its income is rising.
Because grain alcohol is regarded as the best in the world, the Excise Commissioner claims that grain liquor is being promoted by the government in place of molasses liquor.
Grain alcohol was formerly imported from states like Punjab and Haryana, but it is now produced inside the state. This results in a reduction of both GST and import duty. In addition, the government’s income would rise with the licensing cost set at Rs 254 per bulk liter, he said.
In addition, he said, the goal is to generate income of over Rs 50,000 crore in 2024–25 by raising the minimum guarantee quota and minimum guarantee revenue by 10%. He claimed that despite this, there won’t be a rise in the price of alcohol; instead, the cost of UPML’s grain alcohol and 42.8-degree liquor, which was previously priced at Rs 90, would drop to Rs 85.
Furthermore, UPML liquor has introduced a new category called 36-degree liquor, with a price tag of Rs 75. In addition, there are only two categories for alcohol that contains molasses. This keeps the cost of a 25-degree certificate at Rs 50 and the cost of a 36-degree certificate at Rs 70. Their rates have remained unchanged as well. In addition, UPML’s liquor will be offered in glass and tetra packs for the first time, according to the press release.
He said that in an effort to boost income, the government has for the first time instituted a franchise fee, enabling leading global brands to form franchises with UP distilleries.
The Excise Commissioner states that distilleries may boost bottling for a period of one year by doubling the license price and buying liquor from outside sources if the state’s demand for a particular brand rises and their capacity is reached. In addition to increasing state income, this will relieve bottlers and distillers of the burden of establishing new distilleries. To strengthen Uttar Pradesh’s position in the beer export market, the beer export tax has also been lowered by 50 paise per liter.
In addition, a number of initiatives have been taken to stop the policy’s provisions from being abused within the current system. Permission has been granted for the construction of 100 square feet that will serve as permit rooms for persons to consume alcohol close to the beer outlets. For this permit, there would be an annual cost of Rs 5,000. The main benefit of having permit rooms next to beer businesses will be the availability of cold beer. According to the official statement, this will stop individuals from experiencing difficulties as a result of drinking on the streets.