Liquor to Become Costlier in Karnataka from Today as Government Revises Excise Duty

Although the government had previously indicated its intention to “rationalise” liquor pricing in its budget announcements, the specifics had not been detailed until now.

BENGALURU: Karnataka will witness a rise in liquor prices starting May 15, following the State Government’s formal notification revising the additional excise duty (AED) on Indian Made Liquor (IML) and beer.

The new duty structure was issued on May 13, prompting concern among alcohol trade groups, who fear the move could negatively affect sales across the state due to the increased retail cost. Although the government had previously indicated its intention to “rationalise” liquor pricing in its budget announcements, the specifics had not been detailed until now.

Beer—already a rapidly growing segment in Karnataka—will see its fourth price hike in just over two years. Last year’s increase had drawn sharp criticism from the Brewers’ Association of India, a consortium representing beer manufacturers.

Despite the higher cost, alcohol consumption continues to grow steadily in certain regions. Kodagu district, for example, reported an uptick in liquor sales between April and December 2024, compared to the same period the previous year. A total of 7,78,839 boxes were sold in Kodagu during the nine-month window, a rise of 7,206 boxes from 7,71,633 in 2023—translating to a growth of nearly 1%.

Among the three excise divisions in Kodagu—Madikeri, Somwarpet, and Virajpet—the Virajpet zone saw the highest sales volume, clocking 3,15,108 boxes in 2024. This marks a notable 3.5% increase from the previous year, indicating sustained and possibly growing demand for liquor in the area.

Officials say that this trend may be linked to the region’s cultural context, where alcohol is commonly consumed during traditional functions, community gatherings, and local celebrations. Such practices are believed to contribute significantly to the consistent demand, even in the face of price hikes.

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