Uttar Pradesh unveils ‘Excise Export Policy’ for ethanol & liquor

In a first-of-its-kind move, Uttar Pradesh has introduced a standalone Excise Export Policy meant to give new momentum to ethanol exports, attracting investment in potable liquor manufacturing, and strengthening the state’s footprint in global markets.

As per reports, the Excise Export Policy has been approved by the state cabinet and will remain in force for three financial years.

The new framework seeks to increase the production of ethanol and allied products derived from locally sourced agricultural grains and fruits for export-oriented industries. It also aims to encourage industrial investment in potable liquor exports while promoting the growth of ancillary sectors such as distilleries, packaging, logistics, and export services. The initiative is expected to generate substantial direct and indirect employment while enhancing the economic prospects of Uttar Pradesh.

A key objective of the policy is to position Uttar Pradesh as a major player in international beverage markets and contribute meaningfully to India’s foreign exchange reserves through higher export volumes.

To make exports more competitive, the Uttar Pradesh government has reduced bottling charges, export pass fees, franchise fees, and special fees to minimum levels for export volumes equivalent to 25 percent of licensed beverage capacity. Brand registration andapproval norms for export-oriented liquor have also been relaxed, with significantly lower fees.

Additionally, export duty on molasses-based Extra Neutral Alcohol (ENA) supplied to other states has been cut to ₹0.50 per bulk litre. The Uttar Pradesh policy further permits distilleries to produce heritage wines for export, along with provisions for tasting taverns and retail sales.