Ajay Kumar I Lucknow
After the Uttar Pradesh government’s approval of the new excise duty policy, speculation surrounding the liquor business has started. This is because several significant changes are visible in the new excise policy. The most notable points in the new policy are that the UP government aims to reduce the dominance of a handful of people in the liquor trade. At the same time, the government has no hesitation in generating more revenue from liquor sales. Additionally, the Yogi government has its eyes set on Haryana’s excise policy. In fact, liquor enthusiasts from Delhi and the NCR region often travel to Gurgaon for cheaper liquor. This includes drinkers from Noida and Ghaziabad, causing a significant loss to UP. Due to cheaper liquor in Gurgaon, liquor shops in districts of UP bordering Delhi often remain quiet.
As a result of the changes in the Yogi government’s new liquor policy, composite liquor stores will now be seen in the state. Beer and foreign liquor shops can now be merged into a single entity. Additionally, the state will promote tourism through the introduction of vineyards and microbreweries. The new excise policy will benefit people from Delhi and NCR. Since the excise policy for the city of 2021-22 was revoked in August 2022, liquor shops in Delhi have faced a shortage of options and stock for two years. The main aim of the new liquor policy is to generate a revenue of 55,000 crores and strengthen the liquor business. After six years, the Yogi government has introduced a new excise policy. However, it is still unclear whether liquor prices will change or not. The policy was delayed due to the model code of conduct being in effect because of the Maha Kumbh 2025 and the Milkipur assembly by-election.
On February 5, 2025, the new excise policy was approved in a cabinet meeting chaired by Chief Minister Yogi Adityanath. It was said that until now, Delhi customers were forced to buy liquor from Gurugram. Liquor was cheaper and more options were available in Gurugram. With the new excise policy in UP, there will be more options in the state, and people from eastern and northern Delhi will find it more convenient to buy liquor from Ghaziabad-Noida. UP Excise Commissioner Dr. Adarsh Singh, commenting on the new policy’s features, said that the state will now have three types of liquor stores model shops, country liquor shops, and composite stores. Every district in Uttar Pradesh will now have a shop selling fruit-based wines. The license fee for such shops in divisional headquarters will be Rs. 50,000, while in other districts, the fee will be Rs. 30,000. This will increase the consumption of products from fruit growers. Additionally, large-scale composite liquor stores will be opened in every state. These stores will offer foreign liquor, wine, and beer, but drinking will not be allowed on-site. From now on, foreign liquor will also be available in 60 and 90-milliliter glass bottles and shrink-wrapped packs.
The new excise policy also stipulates that no individual or firm will be allocated more than two shops. This brings to mind the period between the 1970s and 1990s. From the 1970s to the 1980s, businessmen like Lala Manilal, Raja Ram Jaiswal, Deep Narayan Jaiswal, Lala Ram Prakash Jaiswal, and Shri Narayan Sahu were dominant in the liquor trade. In the 1980s to 1990s, the notable names were Lala Jagannath Ji, Lala Manilal, and Vinayak Babu. After 1985-88, names like Jawahar Lal and Gorakhpur’s Badri Babu Jaiswal rose to prominence. For many years, the liquor trade in Uttar Pradesh was controlled by eight or nine traders, including Babu Kishanlal, Badri Prasad Jaiswal, and others. But the most significant name was Jawahar Jaiswal, known as the “Liquor King.” He was part of a powerful syndicate, a small group of influential people in the liquor trade who had enough power to influence government decisions.
From 1993 to 2004, Jawahar Jaiswal, who was a Member of Parliament, often claimed that from 1993 to 2000, his group controlled 22 districts. Such a large business had never been seen before in India. At the peak of his influence in the 1990s, Jawahar Jaiswal was reported to have nearly 10,000 liquor shops. It wasn’t just Jawahar Jaiswal; the Jaiswal community had long held a monopoly over the liquor business in UP. Jawahar Jaiswal inherited this business. He entered the trade in 1972 and within eight years, he had gained almost complete control over Varanasi. People from the Jaiswal community claim that 50 years ago, they were referred to as “Kalal,” a derogatory term for those involved in the liquor trade. Kalals were looked down upon, and people would avoid even drinking water touched by them. But with time, the Jaiswal community’s monopoly on the liquor trade became so influential that people’s perception of them changed entirely.
Anyway, from 1993 to 2001, Jawahar Jaiswal was a dominant figure. He was known as the Liquor King. However, with time, there were several fluctuations in the excise policy. In 2000, when the BJP government came to power under Rajnath Singh’s leadership, Excise Minister Surya Pratap Shahi introduced a new excise policy to curb the dominance of liquor traders. This gave rise to new liquor magnates, such as Ponty Chadha, who ruled until 2012. Amid accusations of close ties with the governments of Mayawati and Akhilesh Yadav, Ponty Chadha’s empire expanded. According to Dr. SP Gaur, a former Secretary of Excise and someone who completed a Ph.D. on the 2001 excise policy, the 2001 policy introduced the provision of human lotteries for shop allocations. Any person or firm with their own or leased property could apply for a shop. Additionally, retailers were allowed to purchase liquor from anywhere. Under this policy, a hologram was placed on each bottle to ensure its sale within the state. According to Praveer Kumar, the most significant change in the policy was the division of revenue into two parts license fees and duties, replacing the previous system where revenue from auctions was collected. As a result, the monopolistic reign of the old big players started to diminish, and new entrants, such as retired bankers, MBA graduates, and others, entered the market, who had previously avoided the trade due to its tarnished image. This trend continues to this day.
