UP to soon get its first wine unit; revised excise policy released

Uttar Pradesh will soon get its own independent wine units, with the release of the revised excise policy. As per reports, amendments have been made to the UP Winery Manual to promote the wine business in the state. UP's first manufacturing unit will introduce new perks and exemptions for the wine producers, offering them better quality locally produced products. Currently, the wine sold in Uttar Pradesh is sourced from licensed dealers from other states.

In a bid to promote wine production in Uttar Pradesh, the state cabinet has revised the provisions of the Excise Policy with regards to wineries and procedure to obtain a license for the same. The new order, Uttar Pradesh Drakshasavani (Winery) 2nd Amendment Rule, 2022, is expected to create a viable space for the growth of wine industry.

As per the amended policy, the application fee for setting up a winery has been fixed at ₹2,500. A V-1 license will be issued by the state if the application is approved, for setting up the wine unit.

Following this, the wine dealer will have to procure a V-2 licence to run the winery, which will be charged annually at a fixed rate of ₹5,000. Another FL-3 license is mandatory to fill and store the bottled wines.

The dealer earlier had to deposit ₹5,000 as consideration fee. However, the revised rules further state that government will not charge any fees for lab tests for five years, from the start of the winery. Additionally, the revised excise policy also permits the increase in Alcohol by Volume (ABV) percentage by 12 to 24% in wines.

Sanjay R Bhoosreddy, Additonal Chief Secretary Excise Department stated that the production of subtropical fruits such as mango, jamun, jackfruit, grapes, litchi, guava is produced in a higher amount in the state. However, due to lack of storage facilities, there is excessive wastage of the same. With this new proposal, the government aims at curbing spoilage by setting up the wine industry.

Besides attracting large scale investors, the move is aimed at providing a boost to the farmers by generating employment and providing market for farm produce. Not only this, the revisions in licencing fee structure will also attract other players to develop the market in the state.