Daijiworld Media Network - Bengaluru
Bengaluru, Jun 23: Karnataka's Excise revenue recorded a growth of 14.84% in the one-month period following the implementation of Excise reforms by the State government, driven largely by a sharp increase in beer sales after prices of certain low alcohol-content beer brands were reduced.
Between May 11, when the revised pricing came into effect, and June 11, beer sales rose by 54.67% compared to the corresponding period in 2025. In contrast, sales of Indian Made Liquor (IML) registered a marginal decline of 0.35% during the same period.
In terms of volume, beer sales increased to 54.6 lac cases from May 11 to June 11, 2026, compared to 35.3 lac cases sold during the same period last year. Meanwhile, IML sales declined slightly to 54.55 lac cases from 54.74 lac cases in the corresponding period of 2025.
The increase in beer consumption helped boost total Excise revenue collection to Rs 3,745.14 crore during the period, up from Rs 3,261.24 crore collected in the same period last year.
The growth marks a significant turnaround from the 2025-26 fiscal year, when beer sales had fallen by 11.3% compared to 2024-25. Total beer sales had dropped to 399.29 lac cases in 2025-26 from 450.36 lac cases in the previous fiscal year.
The recent rise in beer sales has been attributed to a combination of lower prices and prevailing heat conditions across the State during the period. However, officials expect beer consumption to moderate in the coming months if monsoon-related cooler weather continues.
Last year, early monsoon conditions and subsequent flooding had contributed to a decline in beer sales, impacting overall consumption trends.
The State government's Excise reforms introduced a pricing structure linked to the alcohol content in beverages rather than the earlier slab-based taxation system. As a result, prices of low alcohol-content beer and certain categories of IML were reduced.
Officials have also observed an emerging consumption trend following the price revision, though they noted that it remains too early to determine whether the pattern will continue in the coming months.