Uttar Pradesh (India) liquor exports set to surpass 1,000 million liters by 2026 amid industry expansion

Uttar Pradesh is on track to become a major player in the global liquor market, with exports expected to exceed 1,000 million liters by 2026, according to the Uttar Pradesh Distillery Association. The state has seen rapid growth in its liquor industry over the past five years, driven by increased production capacity and favorable policy changes.

S K Shukla, President of the Uttar Pradesh Distillery Association and Business Head, reported that the number of distilleries in the state has grown from 61 in 2017-18 to 85 in 2022-23. During this period, production capacity more than doubled, rising from 170 billion liters to 348 billion liters. In just one year, 18 new distilleries began operations, and another 20 are currently under construction.

Liquor exports from Uttar Pradesh have surged by 155% since 2017-18. The state exported 292 million liters in 2017-18, a figure that climbed to 743 million liters by 2022-23. Uttar Pradesh-made liquor now reaches markets in 38 countries.

Industry leaders attribute this growth to several policy reforms introduced by the state government. These include e-governance initiatives, single-window clearances for new projects, and a reduction in export duties on extra neutral alcohol (ENA). These measures have improved investor confidence and attracted significant capital investment into the sector.

The Agricultural and Processed Food Products Export Development Authority (APEDA) has supported these efforts, along with a branding campaign promoting 'Made in UP' products. Industry experts believe these factors will help Uttar Pradesh consolidate its position as a leading exporter of liquor worldwide.

The expansion of the liquor industry in Uttar Pradesh reflects broader trends in India’s beverage sector, where states are seeking to boost exports and attract foreign investment through regulatory reforms and infrastructure development. With continued growth and new distilleries coming online, industry officials remain confident that export targets for 2026 will be met or exceeded.