From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Apr 10: With summer already set in and mercury levels shooting up all over the State, those addicted to cold beer need not have any worries over the shortage of the beer this year after the recent temporary disruption in the production and supply of beer throughout Karnataka.

Excise Minister M P Renukacharya allayed fears over the shortage in production and supply of beer in the State in the coming months.

A few days ago, there was temporary disruption in the production and supply of beer on account change in labels to be pasted on beer bottles following increase in excise duty from 7.5 per cent to 10 per cent.

The temporary shortage in the production and supply of beer coupled with the increase in prices from April 1 on account of the increase in excise duty in Karnataka’s budget for the year 2012-13 had caused anxieties in the minds of beer guzzlers.

However, Officials of the Excise Department said hoarding of beer stocks at old rates by shopkeepers to sell at higher prices after April 1 and make tidy profits was another major reason for temporary shortage in the supply of beer last month.

In the State budget for 2012-13, the State Government has increased the excise duty from 7.5 per cent to 10 per cent on Indian made liquor such as beer and low alcoholic beverage.

The new excise rates have come into effect from April 1.

The minister said the Excise Department has a set a target to collect revenue of Rs 10,700 crore in 2012-13.

In 2011-12, the State has sold 494.62 lakh boxes of Indian made liquor and 212 lakh beer boxes.

The sale of IML and beer was highest in the March and sales stood at 54.55 lakh boxes and 27.43 lakh boxes, respectively, Renukacharya said.

Crackdown of illicit liquor manufacturing centres in various districts contributed to increased sale of IML and beer, he said.