Karnataka: Beer Prices Likely To Increase, Premium Liquor Set To Become Cheaper

While the state had anticipated a 20% price reduction on premium liquor starting this week, the new rate adjustments might take a few more days to be fully implemented.

Beer has seen a surge in popularity in Karnataka, with sales more than doubling in the past two years, partly due to post-Covid consumer behavior

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Beer prices in Karnataka are expected to increase with a potential hike of Rs 10 to Rs 30 per bottle depending on the brand and alcohol content. The move comes after a recent government move to reduce prices for premium liquor.

While the state had anticipated a 20% price reduction on premium liquor starting this week, the new rate adjustments might take a few more days to be fully implemented, as merchants await the updated rate cards, as reported by The Hindu.

The price revision for premium liquor follows the government's rationalisation of excise slabs, a long-standing demand from stakeholders. This change is not only aimed at reducing costs for some popular liquor brands but also at boosting excise revenue. The government had initially announced August 27 as the date for implementing the new prices, aligning liquor costs in Karnataka with those in neighboring states. However, wine merchants have reported that new supplies under the revised rates have yet to arrive.

Beer Prices Set to Rise?

Beer has seen a surge in popularity in Karnataka, with sales more than doubling in the past two years, partly due to post-Covid consumer behavior and scorching summer temperatures, as per a report on Deccan Herald. The Excise Department collected approximately Rs 5,703 crore in 2023-24, compared to Rs 2,757 crore in 2021-22, reflecting the growing demand.

Currently, all beer in the state is subject to a flat rate, but the Excise Department has proposed a new pricing structure with three different slabs based on alcohol content. Additionally, the Additional Excise Duty (AED) is expected to increase for both bottled and draught beer, further contributing to the anticipated price hike.

This proposal follows the reduction of premium liquor prices, intended to stimulate Indian Made Liquor (IML) sales. A final decision on beer pricing will be made after all stakeholders have submitted their objections and feedback on the proposed changes.