Beer boom in Karnataka, sales surge 40 per cent

BENGALURU: The Alcohol in Beverage (AIB) policy has pushed beer sales in the state, which have registered a growth rate of 41.32 per cent in the first half (April to September) this year in comparison to the same period last year.

The department has collected Rs 3,377.88 cr revenue through beer sales in the first half this year as against Rs 2,836.64 cr during the same period last year, reflecting an increase of Rs 541.24 crore. The total excise revenue collection too has increased by 13.39% in the first half in comparison to last year, with the department collecting Rs 22,191.63 crore as against Rs 19,570.23 crore in the same period last year. This includes revenue generated from the sale of Indian Made Liquor (IML), beer and licence fee, fines, etc.

The Excise revenue target has been pegged at Rs 45,000 crore for 2026-’27. In the first six months, the department has already reached the near halfway mark with the impending festive season.

The AIB policy implemented on May 11 reduced the MRP on lager beers with five per cent alcohol v/v content and some premium IML brands, including Scotch whisky. AIB beer sales showed a growth spurt of 34.92% between April and June and 49.69% between July and September, logging a growth rate of 41.32% in the first half this year in comparison to 2025.

In comparison to beer, IML sales registered a 1.14% growth between April and September this year in comparison to 2025, with the department collecting Rs 17,424.57 crore as against Rs 15,376.22 cr in the said period last year.

“The increase in IML (spirits) revenue, albeit minimal in comparison to beer, has come from the first four slabs with MRP ranging from Rs 90 in the first, to Rs 165 for 180 ml in the fourth slab. This segment contributes more than 70% towards the total excise revenue,” said sources. IML in Karnataka is priced and taxed according to its slab.

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