Barring country-made liquor, the prices of beer, whisky, vodka, rum, and wine are expected to remain largely unchanged.
The excise policy, scheduled to be effective from April 1 next year, received approval from the state cabinet on Tuesday.
Although no significant alterations have been proposed, the prices of country-made liquor (both tetra pack and bottled) are anticipated to increase by INR 5 due to a rise in duty. The excise duty imposed on beer and Indian-made foreign liquor remains unchanged. Additionally, the license fees for all retailers will experience a further 10% increase.
Implementing strategies to generate additional revenue, the department will permit the operation of premium liquor outlets at metro stations, railway stations, and airports, provided that approval and a no-objection certificate are obtained from the competent authority.
Likewise, bar operators can set up an extra counter by paying an additional 25% of the license fees. The duration of the occasional bar license has been reduced from 24 hours to 12 hours, with liquor service permitted until midnight of the same day.
Excise commissioner Senthil C Pandian said, “Instead of molasses, grain-based country made liquor can be produced by the distilleries. So far, usage of grains was allowed only for the premium UP liquor, the premium country liquor that is sold in glass bottles.”
Pandian stated that the objective of the policy is to enhance farmers’ income while also guaranteeing improved quality of liquor for the ultimate consumers.
Under an altered situation, liquor vendors would be permitted to allow customers to consume beer on the premises, provided a distinct permit room is available. Nonetheless, the provision of canteen services, including food and snacks, would not be permitted.
Retailers have expressed varied opinions in response to the policy.
“While beer shop owners would gain as on-premises consumption of brew would be possible. But the quota of country made liquor shop owners has been increased substantially and they would have to struggle. The margin of retailers has also been left unchanged,” said spokesperson of the UP liquor sellers welfare association, Devesh Jaiswal.
The revenue goal for the financial year 2024-25 has been raised to INR 50,000 crore.