Lucknow: In a significant move to promote locally produced wine, the Yogi Adityanath-led Uttar Pradesh government is planning to make it mandatory for model liquor shops to stock wine made from fruits grown within the state. The state’s Excise Department is drafting a proposal to amend the current excise policy and regulations, which will soon be presented before the state cabinet.
The aim is to strengthen retail trade and support local wine producers by introducing a minimum stocking quota for indigenous wines. The proposed amendment is expected to benefit local wineries as well as farmers from regions like Lucknow, Muzaffarnagar, Saharanpur, and Noida, where four wineries are currently operating.
Commercial Push to ‘Made in UP’ Wine
While the 2022 excise policy had introduced provisions for making wine from locally grown fruits, commercial-level implementation has remained limited. The new initiative seeks to address that gap.
One major reason for the lack of enthusiasm among retailers has been the absence of excise duty on ‘Made in UP’ wine. Unlike other alcoholic beverages like English wine, desi liquor, and beer, which contribute a significant share of their price as excise duty to the state’s revenue, local wines do not generate similar income. As a result, retailers are hesitant to stock them, as it doesn’t contribute toward fulfilling their Minimum Guarantee Quota (MGQ) obligations—an essential condition tied to revenue targets set by the Excise Department.
Retailers Focus on High-Demand Products
According to liquor vendors in Lucknow, retailers are obligated to meet MGQ targets by purchasing a certain quantity of alcoholic beverages every month. Since local wines are exempt from excise duty and not counted toward MGQ, retailers often ignore them in favor of high-demand products like premium liquors and beers.
To address this issue, the Excise Department plans to tweak the policy so that ‘Made in UP’ wines can be counted toward the MGQ, thereby encouraging retailers to stock and promote them.
This policy shift is expected to provide a much-needed boost to the local wine industry, create new market opportunities for fruit farmers, and contribute to rural economic development—while also aligning with the government’s broader vision of promoting “Make in UP” initiatives.
