The introduction of the new excise policy would result in a 10% price hike for imported alcoholic beverages and beer in Uttar Pradesh starting on April 1, according to an official statement released on Sunday. The Uttar Pradesh Cabinet approved the new excise policy for 2023–2024 on Saturday.
According to the statement, license fees for foreign alcoholic drinks, beer, stores that sell cannabis, and model shops have gone up by 10%.
In the new excise policy, the government has also raised the cost of operating the cafeteria facilities at model shops from the previous Rs 2 lakh to Rs 3 lakh.
“The government has also raised the licensing cost and security for bonded warehouse licenses (BWFL-2A, 2B, and 2C) of foreign beer, wine, and liquor under the new policy.” The master warehouse’s registration and renewal costs have also gone up.
According to Devesh Jaiswal, UP Liquor Sellers’ Welfare Association, “The increase in licenses and that of operating canteen facilities coupled with warehouse licenses will eventually lead to a rise in liquor prices.”
He continued, “It will be too early to speculate on how much the prices will rise.”
The minimum guarantee quota (MGQ) for liquor made in the country has also gone up by 10% because of the new policy. By implementing it, the country’s liquor retailers would have to buy 64.15 crore bulk litres of alcohol with a volume alcohol content (ABV) intensity of 36% rather than 58.32 crore bulk litres in 2022–2023.
“Despite pressure from the alcohol lobby, the government has not changed the timings of sales from the current 10 AM to 10 PM, to 11 PM.”
However, the government has added a rule that lets “special events” extend the sale period. “On special occasions, the time of sale could be extended with the government’s permission,” says the new excise policy. There is still no definition for these “unique occasions.
