Liquor Prices Set to Rise from April 1: Consumers to Pay More per Bottle
Pune Excise Department Seizes Illegal Liquor Worth ₹2.03 Crore In Major Crackdown
Drinkers in India are about to feel the pinch as liquor prices are set to increase from April 1. The state of Uttar Pradesh has recently approved a new excise policy that brings several significant changes affecting local and foreign liquor, shop allocations, and licensing rules.
Under the updated policy, excise duty on country liquor with 36% alcohol content has been raised from ₹165 per litre to ₹173 per litre. This change is expected to push the average price of a bottle up by around ₹5, directly impacting consumers. The move is part of the government’s broader strategy to increase revenue while supporting industry growth. For the financial year 2026‑27, the excise department has set a revenue target of ₹71,278 crore, with the increased duty on domestic liquor projected to generate an additional ₹1,500 crore.
While local liquor prices are rising, other categories remain largely unchanged for now. However, prices for foreign liquor are expected to increase by ₹10 to ₹30 per bottle, depending on the brand. The policy also introduces a new 100 ml miniature pack of local liquor — called a “Baccha” — with 42.8-degree strength, priced at ₹50, marking its first sale in the state.
Shop quotas have been revised under the new rules. With domestic liquor consumption declining in urban areas, the number of shops in cities will be reduced. Meanwhile, rural areas will see an increase in the availability of local liquor outlets, a move that officials say will boost the rural economy and benefit local industries.
Low-alcohol beverages, such as beer, wine, and ready-to-drink (RTD) drinks, will now have separate bar licenses in major cities, including Gautam Buddha Nagar, Ghaziabad, Agra, Prayagraj, Varanasi, and Lucknow. Authorities say this change is aimed at promoting tourism and attracting younger consumers who prefer lighter drinks.
The policy also adjusts license fees for other products. Cannabis shop fees have risen by 10%, while wine and low-strength beverages now carry only a nominal 0.1% duty, which is expected to financially help fruit-producing farmers.
