The total sales volume of beer and IML in 2025-2026 is lower than the sales volume of 2023-2024. | Photo credit: file photo
Karnataka reported an 11.94% rise in excise revenue collection despite a sharp decline in beer sales, which was attributed to a long spell of rain linked to floods and a slight drop in sales of Indian Liquor (IML). Beer sales plummeted by 11.34% and IML sales marginally declined by 0.74% during 2025-2026.
The total sales volume of beer and IML in 2025-2026 is lower than the sales volume of 2023-2024.
At the end of the financial year, ₹40,056.76 crore was collected as excise revenue against ₹35,783 crore collected in 2024–25. In 2023–24, the excise tax collection was ₹34,628.98 crore. The target for the Excise Department was initially set at ₹40,000 crore, which was revised to ₹43,000 crore, in anticipation of higher sales as well as expected revenue from the auction of 569 lapsed CL 2 and CL 7 licences.
Up to 399.29 million cases of beer were sold in 2025–2026 compared to 450.36 million cases sold in 2024–2025. Beer sales are down from 2023-2024 when 444.05 million cases were sold.
IML sales are also down, but marginally by 0.74% from the previous year, and overall IML sales are lower than what was sold in 2023-24. While 703.62 million cases were sold in 2025-2026, 708.85 million cases were sold in 2024-2025.
Finance ministry officials also attributed the drop in sales to rate rationalization and the government expects a recovery in six to eight quarters.
Published – 01 Apr 2026 23:06 IST
