Uttar Pradesh craft beer and microbrewery rules, as of October 2026

Two licences: one to build, one to run

The state excise portal lists MB-6, the licence to establish a microbrewery, plus MB-2, the licence to run one (UP Excise licence module). The UP Brewery Rules define a microbrewery as a small brewery with installed capacity of not more than 600 bulk litres a day, on the premises of a licensed hotel, resort, restaurant or club. The state cabinet first allowed them in June 2019 (Business Standard, 11 June 2019).

At 600 litres a day a brewpub tops out at roughly 2 lakh litres a year on 350 brewing days, which is plenty for one venue. You need the bar licence first: microbreweries are an add-on to an existing hotel, restaurant or club bar.

What the 2026-27 policy changed

The policy took effect on 1 April 2026. For microbreweries and bars it allows (Aabkari Times, February 2026):

• renewal for up to three years at a time
• a Rs 1 lakh discount in the first year on combined applications
• growler sales up to 5 litres
• an additional counter on the premises at 25% of the fee or Rs 2.5 lakh, whichever is higher

The 5 litre limit shapes the pack. A 2 litre growler fits under it twice over, so most brewpubs will sell 1 and 2 litre fills. Counter-pressure filling matters here: a growler filled open from the tap in a 35 °C kitchen loses carbonation fast and picks up oxygen, which ruins hop aroma within days.

Beer taxes held steady

The Brewers Association of India said the 2026-27 policy spared beer while nudging hard liquor prices up (The Pioneer, 23 February 2026). The consideration fee used to fix beer MRP and the special consideration fee on strong and mild beer were both left unchanged. The beer franchisee fee stays at Rs 0.80 per bulk litre.

We could not find a published current per-litre duty for microbrewery beer. The microbrewery rules say duty is payable at rates the government specifies. A January 2021 Hindustan Times report said duty on draught beer had been cut from Rs 150 to Rs 60 per bulk litre, but that is more than five years old. Get the current rate from the excise office before you price a pint. Our beer excise guide explains the terms.

No corporation, private wholesale

Uttar Pradesh has no state beverages corporation for beer. District wholesale runs through private FL-2B licensees and beer bottled in other states comes in under a BWFL-2B bond licence, whose fee rose from Rs 17.5 lakh to Rs 18.5 lakh for 2026-27. For a craft brand that means the job is persuading a wholesaler to stock you, not winning a corporation listing.

We found no provision letting a UP microbrewery sell kegs to other bars. On the rules we could read, its beer is served on its own premises or sold in growlers.

Pouring craft beer without a brewery

A venue without a brewery has several licences to choose from (UP Excise licence module):

• FL-6 hotel bar, FL-7 restaurant bar and FL-7A club bar.
• FL-7(1), a bar licence for low-alcohol drinks only (beer, wine and ready-to-drink), so far limited to Gautam Buddha Nagar, Ghaziabad, Agra and Lucknow. The 2026-27 policy plans to extend low-alcohol retail and on-trade licences to all municipal corporation areas.
• FL-4A model shop, which allows draught beer on the premises and is allotted by e-lottery.

The kegs come from a brewery with an FL-3 bottling permission, or from an out-of-state brand through BWFL-2B, then through wholesale. A pizzeria in Noida wanting craft taps is really shopping for a brand with UP label registration and a wholesaler who will carry its kegs.

Contract and franchise brewing

The policy keeps a beer franchisee fee of Rs 0.80 per bulk litre for beer sold in Uttar Pradesh, which tells you franchise brewing exists in the system. A brand brews under a tie-up at a licensed brewery holding B-1 and FL-3 permissions. Its labels are then registered in UP. The approval steps vary, so ask the excise office before you sign with a host plant. Our contract brewing guide covers the commercial side.

What to confirm

Confirm the current MB-2 fee, the duty rate for draught beer and whether growlers need a separate label approval. Rates and licence lists change each April. Work with a licensing adviser. This summary is dated 8 October 2026 and is not legal advice.

Common questions

Can a microbrewery in Uttar Pradesh sell growlers?

Yes, from the 2026-27 policy, up to 5 litres per sale. Check the exact conditions with your district excise office.

What is the production cap for a UP microbrewery?

Installed capacity of not more than 600 bulk litres a day, under the UP Brewery Rules.

Did Uttar Pradesh raise beer taxes in 2026-27?

No. The beer consideration fee and the special consideration fee on strong and mild beer were left unchanged, while hard liquor prices rose.

Which licence lets a restaurant serve only beer and wine in UP?

FL-7(1), a bar licence for low-alcohol drinks, currently in Gautam Buddha Nagar, Ghaziabad, Agra and Lucknow. The 2026-27 policy plans to widen low-alcohol licences to all municipal corporation areas.