The Uttarakhand government has approved its 2025-26 excise policy, mandating the closure of liquor shops near religious sites. This decision, aimed at addressing public sensitivities, was announced following a state cabinet meeting led by Chief Minister Pushkar Singh Dhami.
Under the revised policy, previously issued liquor shop licenses near religious places will be reviewed and canceled. The policy also strengthens consumer protection by abolishing sub-shops, metro liquor sales systems, and penalizing shops selling liquor above Maximum Retail Price (MRP).
Key Highlights of the New Policy:
- Boost for Local Farmers and Residents: Distilleries are encouraged to use locally produced agricultural products, providing farmers with new markets and economic opportunities.
- Exemptions for Hill Wineries: Winery units in hilly areas producing liquor from state-grown fruits will enjoy a 15-year excise duty exemption.
- Transparent Licensing: Licenses will be allotted through renewal, lottery, or maximum offer systems, ensuring fairness and transparency.
- Revenue Target Set at INR 5060 Crore: Following increased excise revenue in recent years, the new policy aims for significant growth in 2025-26.
In 2023-24, the excise department earned INR 4038.69 crore, exceeding its target of INR 4000 crore. By the current fiscal year’s end, revenue is expected to approach INR 4439 crore.
To further localize the industry, bulk liquor licenses will now be issued exclusively to Uttarakhand residents. The policy also reduces export duties and provides facilities for malt and spirit industries in hill areas to attract investment.
In addition to regulating sales, the state plans to run awareness campaigns on the adverse effects of alcohol, reflecting a holistic approach to managing alcohol consumption.
