
Mon Nov 03 16:07:02 UTC 2025: Here’s a news article summarizing the information, formatted for clarity:
Karnataka Beer Sales Plunge Amid Heavy Rains and Excise Duty Hike
Bengaluru, November 3, 2025 – Beer sales in Karnataka have plummeted by a significant 18.35% between April and October compared to the same period last year, according to data released by the Excise Department. This sharp decline is attributed to a combination of unusually heavy rainfall and floods in several regions, particularly the Kalyana Karnataka area, along with a steep increase in excise duty.
While beer sales suffered, Indian Made Liquor (IML) sales saw a smaller decrease of 1.07%. Despite the dip in both categories, the state’s excise revenue collection has grown by 11.34%, reaching ₹22,995 crore, compared to ₹20,653 crore last year. This revenue growth is largely due to increased excise duty on basic liquor, which accounts for a substantial portion of the state’s excise revenue.
An Excise Department official explained that the extended rainy season and cooler summer months deterred consumers from venturing out, impacting beer consumption. Additionally, the cessation or reduction of sales schemes by beer companies, which previously incentivized retailers to stock larger quantities, further contributed to the decline.
While the rationalization of excise slabs aimed at boosting premium liquor sales resulted in some increase in offtake, the growth did not meet expectations. The overall market continues to be dominated by more affordable options, with the increased duty on these beverages significantly impacting revenue.