UP’s Q1 excise exports up 45.4%

Uttar Pradesh’s excise exports (liquor ) grew 45.4 per cent year-on-year in the first quarter of FY2026–27, significantly outpacing the 18.3 per cent growth recorded nationally, as the state’s three-year Excise Export Policy begins to translate into higher production, fresh investments and greater activity across its supply chain, the release said.

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According to the release, during April-June 2026, India’s excise exports stood at about USD 101.7 million, of which Uttar Pradesh accounted for approximately USD 12.78 million, compared with USD 8.79 million in the corresponding period last year. The increase translates into additional export earnings of nearly USD 3.99 million for the state.

Uttar Pradesh’s share of India’s excise exports consequently rose from 10.2 per cent to 12.6 per cent, placing it third nationally after Maharashtra and Punjab. Export volumes from the state increased 163 per cent during the quarter, with growth recorded in each month.

The export growth is also extending upstream into agriculture. About 25,000 quintals of molasses were exported from Basti to international markets during the period, generating nearly USD 500,000 in foreign exchange earnings. Since molasses falls under a different duty classification, these earnings are separate from the excise export figures.

The impact is also visible in the movement of finished products within India. Units in Uttar Pradesh supplied 1.64 crore additional bottles to other states between April and July 2026 compared with the same period a year earlier, an increase of about 45.7 per cent.

The expansion in demand is accompanied by new investment and the revival of existing capacity. United Breweries in Unnao and Mount Everest Breweries in Hardoi are establishing new units, while Woodpecker GreenAgri Nutrients has established a unit in Farrukhabad. Allied Blenders and Distillers has also restarted a previously closed unit in Moradabad.

Kiyan Distillery in Gorakhpur has applied to establish a beverage distillery and brewery alongside its ethanol production operations. Departmental figures also indicate that Radico Khaitan is shifting export production from plants in other states to its facilities in Sitapur and Rampur.

Dr Adarsh Singh, Excise Commissioner of Uttar Pradesh, said the effect of export growth extends beyond the excise industry, given its linkages with agriculture and several manufacturing and service segments. The upstream chain includes sugarcane, molasses and grain, while downstream activity covers glass bottles, packaging, caps, labelling, storage and transportation.

With higher production and exports, these interconnected sectors are seeing greater economic activity, according to the department. The development indicates that the state’s export policy is increasingly influencing the broader industrial chain, linking agricultural inputs and manufacturing capacity with domestic distribution and international markets, the release noted.

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