Karnataka Likely To Announce Price Hike For Beer: Know Details

The latest notification follows Siddaramaiah-led government’s proposal in August 2024 to increase excise duty on strong beer.

If implemented, this will mark the third beer price hike in Karnataka in just over a year.

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In Karnataka, beer lovers are set to face a pinch with a price rise as the state government has issued a final notification increasing excise duty on beer. The new rates proposed on Wednesday will come into effect from January 20, 2025. With the implementation of final notification, the retail prices of beer are expected to rise of premium beer by Rs 10 to Rs 50 depending on the brand.

Under the revised rates: Rs 12 per bulk litre will be levied on beer with alcohol content below 5% and Rs 20 per bulk litre will apply to beer with alcohol content between 5% and 8%, reported Deccan Herald.

Excise Minister RB Thimmapur confirmed on Thursday that while discussions on further price adjustments are ongoing no decisions have been made, according to a report on India Today.

The latest notification follows Siddaramaiah-led government’s proposal in August 2024 to increase excise duty on strong beer. This comes after earlier hikes in the July 2023 state budget where duties on Indian Made Foreign Liquor (IMFL) were raised by 20% and beer prices saw a 10% increase.

If implemented, this will mark the third beer price hike in Karnataka in just over a year sparking debates over the government’s revenue strategies amid rising costs in various sectors. Beer lovers and industry stakeholders alike are bracing for the impact of these frequent increases.

Meanwhile, United Breweries, the maker of well-known beer brands like Heineken and Kingfisher, announced that it has stopped supplying its beer to the Telangana Beverages Corporation Limited (TGBCL), the state-run liquor distribution body. As a result, its products will no longer be available for sale in Telangana, one of India's largest liquor markets. In a statement, the company explained that the decision was driven by "significant and ongoing operating losses" despite consistent efforts over the past two years.