Lucknow: Uttar Pradesh has recorded a sharp rise in exports during the first two months of the implementation of its new three-year Excise Export Policy (2026-29), with exports from the state increasing by 84.5 per cent in April-May 2026.
The policy, introduced by the Yogi Adityanath government with effect from April 1, has also increased Uttar Pradesh’s share in India’s overall exports from 8.1 per cent to 14 per cent, helping the state move from fifth to third position nationally.
The state’s export growth has significantly outpaced the country’s overall export growth of 6.3 per cent during the same period, according to the figures cited by the state government.
UP Records $39.4 lakh Increase
India recorded total exports worth around $6.15 crore during April-May 2026, of which Uttar Pradesh accounted for $86 lakh. During the corresponding period last year, India’s exports stood at $57.8 lakh, while Uttar Pradesh contributed $46.6 lakh.
While the country registered an increase of $36.5 lakh during the period, Uttar Pradesh alone recorded an increase of $39.4 lakh.
In a separate development, around 25,000 quintals of molasses were exported from Basti, generating foreign exchange earnings of approximately $500,000. Since molasses falls under a different tariff classification, this amount is not included in the above export figures.
The state government said the growth has been achieved without financial assistance or subsidies, with regulatory charges being rationalised to facilitate exports. A track-and-trace system has also been introduced for every export bottle.
Investment and Employment Opportunities Expand
The three-year stability offered by the new policy has boosted investor confidence and encouraged new investments in the sector.
United Breweries is establishing a new unit in Unnao, while Mount Everest Breweries is setting up a facility in Hardoi. Woodpecker GreenAgri Nutrients has established a unit in Farrukhabad, while Allied Blenders and Distillers has revived a closed unit in Moradabad.
Kiyan Distillery, which established an ethanol production facility in Gorakhpur around a year ago, has applied to set up both a beverage distillery and brewery.
According to departmental figures, Radico Khaitan is shifting some export-oriented production from other states to its plants in Sitapur and Rampur. Another international company is in the final stages of selecting a site in Uttar Pradesh, while several existing distilleries are expanding their production capacities.
Farmers Benefit from Rising Demand
Excise and Prohibition Minister (Independent Charge) Nitin Agarwal said the policy was also generating indirect benefits for farmers.
Higher ethanol production has increased demand for molasses from sugar mills, benefiting sugarcane farmers. At the same time, increased production at grain-based distilleries has boosted procurement of agricultural commodities.
The policy also contains provisions linking export incentives to the timely payment of farmers. Distilleries or their owners facing effective recovery certificates for pending sugarcane payments or excise dues at another unit or sugar mill are not eligible for the concessions available under the policy.
Business Expands Across the Supply Chain
Excise Commissioner Dr Adarsh Singh said the sector has strong backward linkages with agriculture, particularly sugarcane, molasses and grains, while its forward linkages extend to glass manufacturing, packaging, caps, labelling, storage and transportation.
Between April and July 2026, units in Uttar Pradesh supplied 16.4 million more bottles to other states, representing a 45.7 per cent increase over the corresponding period last year.
The government said the rise was not achieved by reducing domestic supplies but through an increase in overall production.
UP Policy Emerging as a Model
The Centre’s Ministry of Food Processing Industries has constituted a task force to work towards developing a model export policy for states, with participation from APEDA and state excise departments.
During a task force meeting, Uttar Pradesh’s policy was appreciated as a potentially useful framework for other states. The state’s experience is also being considered for incorporation into a proposed national model policy.
The Uttar Pradesh government believes the new policy has created an integrated framework linking exports, investment, industrial production, employment, agricultural demand and foreign exchange earnings. The sharp increase in exports during the first two months of implementation has strengthened the state’s position as an emerging major contributor to India’s export economy.
