Liquor sales shatter records in Karnataka

Bengaluru: Karnataka has witnessed an unprecedented surge in liquor sales, with the state recording its highest-ever revenue from alcohol within a span of just 30 days. The implementation of the new Excise Policy has turned into a major revenue booster for the government, helping the Excise Department collect more than Rs 3,500 crore in a single month.

According to official figures, liquor sales between May and June have broken all previous records, reflecting a sharp increase in both consumption and revenue generation. The new taxation model, introduced under the revised excise framework, has significantly contributed to the record collections, making it one of the most successful revenue periods in the department’s history.

The revised policy taxes alcoholic beverages based on their alcohol content, a move that has led to a substantial increase in government earnings. Despite price revisions and changes in tax structures, consumer demand has remained strong, resulting in an impressive jump in overall sales.

Industry representatives say the liquor business has grown by nearly 20 percent over the past month. Liquor vendors and bar owners have reported increased footfall and stronger sales across various categories, particularly beer and Indian Made Liquor (IML).

One of the most striking trends has been the surge in beer consumption. Data indicates that beer sales between May 11 and June 11 rose by nearly 59.4 percent compared to the same period last year. During this period, approximately 403.1 lakh litres of beer were sold across the state.

IML sales have also registered a notable increase, touching 443.5 lakh litres during the same period. The combined impact of higher sales volumes and revised taxation has pushed excise revenue to record levels.

Last year, Karnataka generated around Rs 3,022 crore in revenue during the corresponding period. This year, the figure has climbed to Rs 3,509 crore, reflecting a remarkable increase of nearly Rs 500 crore in just one month.

Interestingly, the rise in sales has come despite an increase in the prices of several lower-priced liquor brands under the new tax regime. This suggests that consumer demand has remained resilient regardless of pricing changes.

The booming liquor trade has also brought significant benefits to bars, restaurants and retail liquor outlets. Business owners say the summer season, coupled with changing consumption patterns, has contributed to the spike in demand.

While excise officials credit the new taxation system for the impressive collections, industry observers point to multiple factors behind the surge. The intense summer heat

across Karnataka is believed to have driven higher beer consumption, while overall demand for alcoholic beverages has remained consistently strong.

Whatever the reasons, one fact is clear: Karnataka’s liquor market has entered record territory. With over Rs 3,500 crore flowing into government coffers in just 30 days, the new Excise Policy has delivered a major financial windfall, making it one of the most lucrative periods ever witnessed by the state’s Excise Department.