Liquor prices are expected to rise by 5-10% as the state focuses on promoting indigenous ingredients and micro-distillation units
Uttarakhand’s cabinet approved a new state excise policy, unveiling plans to boost the use of locally grown fruits and herbs in liquor production, particularly in the hilly regions. The policy targets a 10 per cent increase in revenue, aiming to reach Rs 4,400 crore in the financial year 2024-2025, up from Rs 4,000 crore.
As a result, alcohol prices are anticipated to rise by 5 per cent to 10 per cent. The introduction of a bulk license (FL-2) for liquor distribution to private entities is a key feature of the policy. Wholesale licenses for the supply of internationally branded domestic liquor will be granted to ‘native permanent residents of Uttarakhand,’ a departure from the current practice where liquor companies handle wholesale operations.
The policy incorporates measures to combat the circulation of adulterated liquor, enhance the state’s reputation as a tourism hub and diversify revenue streams. Micro-distillation units are slated for establishment in hilly regions to encourage innovation and investment. The policy emphasises the use of locally sourced plants, herbs, fruits and flowers in liquor production, aiming to position the state as a hub for aromatic wine production.
Under the new regulations, the license fee for establishments in hilly areas is set at Rs 5 lakh, half the fee compared to those in the plains, with a minimum shop area requirement of 400 sq ft. The policy introduces seasonal bar licenses and encourages small liquor outlets in tourism hotspots. Liquor shop allocations will occur in two phases, with a lottery system in the first phase, and the remaining shops assigned on a first-come, first-served basis. Renovation will be permitted for shops with no outstanding liabilities and secured premises, while ownership of more than three shops will be restricted under the new regulations.
