Big changes in UP liquor policy: Composite shops, 2-store limit, new licensing fees and e-lottery

The Uttar Pradesh Cabinet has approved the Excise Policy for the financial year 2025-26, introducing key changes such as an e-lottery system for liquor and 'bhang' (cannabis) shop allocations, the concept of "Composite Shops," and mandatory tetra pack packaging for country liquor.

The decision was taken at a cabinet meeting chaired by Chief Minister Yogi Adityanath on Wednesday night.

“For the first time in seven years, all country liquor shops, composite shops, model shops, and cannabis shops in the state will be allocated through an e-lottery system instead of the renewal process followed earlier,” Excise Minister Nitin Agarwal told reporte₹on Thursday.

Under the new policy, applicants can submit only one application, and no individual will be allotted more than two shops across the state, Agarwal said.

The policy introduces "Composite Shops," merging separate beer and foreign liquor outlets into a single unit, allowing consume₹to purchase all types of alcoholic beverages from one shop. Existing adjacent beer and foreign liquor shops will be merged, he added.

The government has categorised processing fees into five slabs:

The existing operating hours for liquor shops, from 10 am to 10 pm, will remain unchanged.

The government has introduced 90ml bottles in the regular category of foreign liquor, while 60ml and 90ml bottles will be available in the premium segment. Country liquor, previously sold in glass bottles, will now be mandatorily packaged in tetra packs to enhance safety and prevent adulteration.

The excise policy ensures a dedicated shop for fruit-based liquor at every district headquarters. Licensing fees for these shops are set at ₹50,000 for divisional and district headquarters and ₹30,000 for other district locations, the minister said.