UP to add over 3k beer counters at country liquor shops amid soaring demands

The sale of beer cans and bottles will be allowed through 3,138 additional country liquor vendors across Uttar Pradesh under the new excise policy.

The excise policy, which came into effect on April 1, allows country liquor shops to be upgraded to add a counter for sale of beers as long as no composite shop is present within 3 km distance. The move is expected to generate Rs 150 crore just through licence fees.

The excise department has initiated the process of upgrading 3,138 shops to cater to the growing demand for brew, in addition to the 9,362 existing composite shops.

Permissions are being granted following local surveys, aiming to create a stronger customer base for composite shop owners who pay higher license fees to the government. Stakeholders attribute the rising demand for brew to various factors, with shorter winter seasons being the primary cause.

In comparison to the 2019-20 financial year, when 35.15 crore units (each unit being 650 ml) were sold in Uttar Pradesh, the demand surged to 53.6 crore units in the 2023-24 financial year, marking a 53 per cent increase.

"Over the past few years, the temperatures have gone up in the state. Also, the urban heat island effect is being experienced, and the younger population prefers beer. You do not require glasses or water to consume it, and cans can be disposed of easily after consumption," TOI quoted Devesh Jaiswal, co-owner of a composite shop in Talkatora locality.

Excise Commissioner Adarsh Singh stated that the total number of retail vendors is projected to increase from 9,362 to 12,518. “In addition to boosting revenue through license fees, the year-round sale of beer is expected to generate significant excise duty for the department,” he said. Singh added that a survey of country liquor shops is underway to assess whether sufficient space is available on their premises and to ensure that no other composite vend is operating within a 3-kilometre radius.

Aiming for a revenue target of Rs 63,000 crore in the 2025–26 financial year, the department expects to generate approximately Rs 150 crore through additional licence fees and another Rs 1,000–Rs 1,500 crore from excise duty on beer sold via the expanded network of retail vends.

Having already set a new benchmark by collecting Rs 52,575 crore in 2024–25, the department now needs to boost its collections by an additional rs 10,425 crore to meet the state government’s target.