Uttarakhand’s Liquor Policy Shake-Up: Why, How & What’s Next?

In a bold move, the Uttarakhand government has rolled out the Excise Policy 2025-26, shutting down liquor shops near religious sites. Chief Minister Pushkar Singh Dhami spearheaded the decision, aiming to respect public sentiment while ensuring economic stability. But what led to this major shake-up, and how will it impact businesses and consumers? Let’s break it down.

Why This Policy?

The decision to close liquor shops near temples, mosques, and other sacred places stems from rising public concerns over the presence of alcohol outlets in culturally sensitive areas. The government seeks to uphold social values while streamlining liquor regulations. This move is also part of a larger effort to promote responsible drinking and economic transparency.

How Will It Work?

• Liquor Shops Near Religious Sites Shut Down – All existing licences for such outlets will be revoked, and no new ones will be issued in proximity to religious places.
• Fairer Liquor Shop Allocation – The government is introducing a transparent licensing system, ensuring equal opportunities for local business owners.
• Support for Local Farmers – Distilleries will now source raw materials from local farmers, boosting rural income and economic growth.
• Strict MRP Enforcement – Any shop caught selling liquor above the Maximum Retail Price (MRP) will face immediate licence cancellation.
• Revenue Target Set at ₹5060 Crore – Following strong revenue collection in recent years, the excise department has set an ambitious target for the upcoming fiscal year.
• Bulk Liquor Licences Reserved for Locals – To retain economic benefits within the state, only Uttarakhand residents can apply for bulk liquor sales permits.
• 15-Year Tax Exemption for Wineries – Wineries using homegrown fruits will enjoy a complete excise duty waiver for the next 15 years to promote local production.
• Special Incentives for Liquor Businesses in Hills – Malt and spirit industries will receive additional benefits for setting up operations in hilly regions.
• Public Awareness Campaigns – The government is set to launch initiatives to educate citizens on alcohol consumption’s impact while maintaining controlled sales.

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What’s Next for the Liquor Industry?

This policy marks a significant shift in Uttarakhand’s liquor landscape. While some may see it as a restriction, others view it as a progressive step toward structured alcohol regulation and economic inclusivity. With a focus on local business growth, fair pricing, and responsible drinking, the excise policy aims to create a more balanced and transparent liquor trade system in the state.