Uttar Pradesh Excise Revenue Hits INR 57,722 Crore in FY 2025-26

Uttar Pradesh’s excise department has reported a landmark achievement for the 2025-26 financial year, generating a record-breaking INR 57,722.26 crore in revenue. This figure represents a robust 9.79% year-on-year growth compared to the INR 52,573.07 crore collected in FY 2024-25. While the collection slightly trailed the ambitious internal target of INR 63,000 crore, it marks the highest annual revenue ever recorded by the state’s excise department.

The Digital Shift: Modernization and Transparency

State Excise Minister Nitin Agarwal attributed this historic growth to the aggressive implementation of technology and modernization within the department. A central pillar of this transformation is the Integrated Excise Supply Chain Management System (IESCMS).

By migrating core functions to an online platform, the department has:

• Streamlined Operations: Simplified the issuance of licenses and permits.
• End-to-End Tracking: Established a rigorous system to monitor the liquor supply chain from production to the retail counter.
• Enhanced Oversight: Introduced high-security excise adhesive labels and QR-code-based tracking to eliminate duplication and ensure the authenticity of products.

Policy Reforms: Composite Shops and Retail Expansion

A significant driver of the revenue jump was a strategic tweak in the retail structure. Starting April 1, 2025, the state introduced composite liquor shops, allowing both foreign liquor and beer to be sold from a single counter. Previously, these were sold through standalone vends. This change provided greater convenience to consumers and allowed retail traders to cater to a wider market segment, significantly boosting sales volumes across the 27,308 licensed vends in the state.

Industrial Growth: Ethanol and Molasses

Beyond retail sales, the industrial sector played a vital role in the state's fiscal health.

• Ethanol Production: Up to February 2026, the state produced 2,083.8 million litres of power alcohol (ethanol). This surge has not only supported the national fuel-blending program but also contributed a steady stream of revenue to the state exchequer.
• Molasses and Exports: Excellent performance in the production and export of molasses further bolstered the department's earnings.

Enforcement and Crackdown on Illicit Trade

To protect revenue and ensure public safety, the department intensified its crackdown on the illicit liquor trade. Using automated number plate reader technology at checkpoints and GPS-based tracking for transport vehicles, the authorities maintained a strict vigil.

• Cases Registered: Over 1.09 lakh cases were registered in FY 2025-26.
• Seizures: More than 28.08 lakh litres of illicit liquor were confiscated.
• Arrests: 19,935 individuals were arrested, with 3,721 sent to jail, and 143 vehicles involved in smuggling were impounded.

Regional Leaders in Revenue

The capital city, Lucknow, emerged as the highest contributor to the state's excise kitty, followed closely by the industrial and urban hubs of the National Capital Region (NCR).

• Lucknow: INR 2,580.80 crore
• Gautam Buddh Nagar (Noida): INR 2,418.50 crore
• Ghaziabad: INR 1,889.26 crore
• Kanpur Nagar: INR 1,846.60 crore
• Agra: INR 1,718.15 crore

Summing Up: Looking Toward FY 2026-27

The success of FY 2025-26 has set a high bar for the upcoming fiscal year. The Uttar Pradesh government has already approved the 2026-27 policy with a staggering revenue target of INR 71,278 crore.

To achieve this, the department is doubling down on its "Ease of Doing Business" initiatives, including the use of an e-lottery system for shop allotments to ensure transparency. With a renewed focus on export policies and the continued expansion of distilleries and breweries, Uttar Pradesh is positioning its excise sector as a primary engine for the state’s journey toward becoming a $1 trillion economy.