Uttar Pradesh's New Excise Policy Brings Major Changes for Liquor Trade
The state of Uttar Pradesh is set to implement a comprehensive new excise policy starting April 1, introducing significant reforms aimed at providing relief to licence holders while streamlining pricing and quota systems across various liquor categories. The policy, formulated by the excise department, addresses long-standing issues in the industry through innovative measures.
Introduction of Miniature Country Liquor Bottles
In a landmark move, the policy will introduce a 100 ml miniature bottle of country liquor, colloquially known as a 'bachcha', for the first time in the market. This 42.8% strength miniature will be priced at Rs 50. Previously, miniature bottles were available exclusively for Indian Made Foreign Liquor (IMFL), with the smallest unit for country liquor being the 200 ml 'paua'. This addition is expected to cater to diverse consumer preferences and increase accessibility.
Rationalized Quota System Based on Seasonal Demand
The policy introduces a nuanced quota system that varies between urban and rural areas and adjusts monthly based on seasonal consumption patterns. In municipal corporation limits, where sales are typically lower, the quota for country liquor shops is fixed at 4%, while rural areas will see an increased quota of 8%. This differentiation aims to align supply with actual demand more effectively.
Officials have emphasized that shopkeepers will no longer face pressure to lift excess stock during periods of poor sales, addressing a persistent grievance. The month-wise quotas have been carefully rationalized:
- April: 8.5%
- May (wedding season): 9.5%
- June: 9%
- July: 8%
- August and September: 6.5%
- October: 8.5%
- November and December: 9.5%
- January: 9%
- February: 8%
- March: 7.5%
This seasonal adjustment is designed to prevent wastage and optimize inventory management throughout the year.
Revised Pricing Structure to Eliminate Disputes
To curb frequent disputes over change and allegations of overcharging, the policy standardizes pricing for country liquor. The new fixed rates per 200 ml are:
- 25% strength: Rs 55
- 28% strength: Rs 60
- 36% strength: Rs 80
- 42.8% strength: Rs 90
Previously, uneven pricing such as Rs 55, Rs 65, and Rs 75 often led to friction between customers and shopkeepers regarding small change. Officials assert that the revised pricing structure will significantly reduce such conflicts and enhance transparency in transactions.
Major Relief for Wholesale Traders
Wholesale traders have been granted substantial relief under the new policy. Earlier, licence fees ranged between Rs 20 lakh and Rs 25 lakh, imposing heavy financial burdens on warehouses with low sales volumes. The revised policy reduces the base licence fee to Rs 2 lakh, with an additional duty of 0.4% to 0.5% linked directly to sales volume.
Specifically, warehouses with higher sales will pay 0.5% duty, while those with lower sales will pay 0.4%. This progressive structure is intended to alleviate the financial strain on smaller operations and create a more equitable licensing framework.
District Excise Officer Sushil Kumar Mishra highlighted that the new framework offers significant relief to licensees and removes the pressure associated with rigid monthly lifting norms, fostering a more business-friendly environment.
Adjustments for Other Categories
The policy also includes changes for other liquor categories. The quota and licence fee for bhang shops have been increased by 10%, with corresponding price rises expected. Meanwhile, IMFL will become costlier by Rs 10 to Rs 30 from April 1, accompanied by a 7.5% increase in both quota and licence fee. Beer will see a similar 7.5% hike in quota and licence fees, reflecting broader adjustments across the excise landscape.
These comprehensive reforms, guided by Special Secretary Abhishek Anand and Excise Commissioner Adarsh Singh, represent a concerted effort to modernize Uttar Pradesh's excise regime, balancing revenue generation with trade facilitation and consumer convenience.
