This Southern State Guzzled More Than 313 Lakh Crates Of Beer In Last 8 Months
The excise department's revenue grew 6.5% year-on-year, rising from Rs 22,168 crore to Rs 23.6 crore. However the annual target dropped from 64% to 61%
A new report on alcohol consumption in Karnataka pointed out a shift in consumption patterns. While sales of hard liquor, including whisky and rum, have declined, the report indicates a growing preference for beer among consumers in the state.
At the same time, the sale of Indian Made Liquor (IML) registered a marginal year-on-year decline of just over 0.6% between April and November, while beer sales in Karnataka increased by 10.9%.
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According to data received from the Karnataka State Excise Department, 466 lakh carton boxes of Indian Made Liquor were sold during the eight months, while last year this number was 469 lakh.
On the other hand, beer sales have increased. According to latest figures, 313.5 lakh carton boxes of beer were sold over the past eight months, compared to 282.6 lakh crates during the same period last year.
How much sales in which month?
Beer sales typically decline annually during October and November, while IML sales see an increase. Conversely, beer sales are generally strong during the summer months of April, May, July, August, and September.
IML sales also experience growth in April, May, August, October, and November. However, both beer and IML sales dipped in June compared to the previous year.
Decline in Sales of Indian-Made Liquor
Sales of Indian-Made Liquor (IML) are experiencing a decline this year, contrasting with the trend observed last year. The Wine Merchants Association has identified rising prices as the primary cause.
Karunakar Hegde, President of the Bangalore Cluster, Federation of Wine Merchants Association, explained, “Sales decreased due to a total increase of 10% three times in the last two years. However, for two months, the government reduced the prices of high-quality whisky, brandy, and rum by 20%, which has boosted sales."
Beer experiences significant demand in the state during the summer months. In an effort to increase revenue, the government raised prices in June. This resulted in a decline in sales of semi-premium and premium liquor.
Recognising the falling sales figures, the government reevaluated its pricing strategy in August and implemented a price reduction. An official noted that beer sales have consistently been high since the onset of Covid. Increased affordability, alongside other factors, has contributed to a significant rise in beer consumption.
The department’s revenue has seen a 6.5% increase year-on-year this year (from Rs 22,168 crore to Rs 23.6 crore), but the achievement of the annual target was 61% this year compared to 64% last year.
A government official said that the improvement in liquor prices reduced the revenue deficit by Rs 200 crore. The revenue target for 2024-25 from liquor sales is Rs 38,525 crore.
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