New Year Shock for Liquor Consumers: English Liquor Prices in Uttar Pradesh Likely to Rise by up to ₹100

Liquor consumers in Uttar Pradesh may have to dig deeper into their pockets in the New Year, as the state government is set to introduce a new Excise Policy for the financial year 2026–27. The proposed policy, scheduled to come into effect from 1 April, is expected to bring a significant increase in liquor prices, particularly impacting premium and high-end brands.

According to official sources, the price of English liquor could rise by up to ₹100 per bottle. Under the proposed structure, a quarter bottle may become costlier by ₹15–20, a half bottle by nearly ₹50, and a full bottle by as much as ₹100. However, the government is expected to tread cautiously when it comes to regular and lower-priced brands, with the intent of avoiding a shift in consumer demand towards illicit liquor.

Focus on Revenue Without Fueling Illegal Trade

Officials indicate that the pricing strategy is being designed to balance revenue generation with public safety. By keeping the price hike limited mainly to premium segments, the government aims to prevent an increase in the consumption of spurious or illegal alcohol, which has been a persistent concern in the past.

No Tender Process This Year Either

Continuing the trend of previous years, the government is unlikely to invite fresh tenders for liquor shops. Instead, existing licenses will be renewed, even as the license fee is proposed to be increased by around 10 percent. This move is expected to provide operational continuity to vendors while boosting state revenue.

Another major proposal under the new excise policy is the extension of liquor shop operating hours. Subject to government approval, liquor outlets across the state may be allowed to remain open until 11:00 PM, a step aimed at improving consumer convenience and increasing excise collections.

Uttar Pradesh Emerges as a Leader in Ethanol Production

Alongside reforms in liquor policy, Uttar Pradesh has also emerged as a national leader in ethanol production, reflecting the impact of policy reforms and improved ease of doing business. As of November 2025, the state recorded a historic ethanol production of 141.8 crore litres, the highest ever.

Out of this, 105.25 crore litres were sold within the state, while 40.96 crore litres were supplied to other states, reinforcing Uttar Pradesh’s growing role in India’s energy and biofuel ecosystem.

Outlook

While the proposed excise policy is likely to cause short-term discomfort for liquor consumers, especially those preferring premium brands, the government sees it as a necessary step towards enhancing revenue, regulating the market, and supporting allied sectors such as ethanol production. The final contours of the policy will be clear once it receives formal approval, but a price hike now appears almost inevitable.