Karnataka: Beer boosts excise revenue by 14.84% after reforms

The sale of beer increased the total excise collection between 11 May and 11 June 2026 to ₹ 3,745.14 crore from ₹ 3,261.24 crore in the same period last year. | Photo credit: File photo

Buoyed by huge growth in beer sales after prices of some low-alcohol beer fell – following excise duty reforms introduced by the state government last month – revenue rose 14.84% in the one-month window. The performance of beer sales in May-June this year contrasts with that of 2025-26, where sales fell by 11.3% compared to 2024-25.

While beer sales increased by 54.67% between May 11 (when the new prices came into effect) and June 11, India Liquor (IML) sales in the same period fell slightly by 0.35% compared to the same period in 2025.

Cases sold

In terms of volume, 54.6 million cases of beer were sold from May 11 to June 11, 2026, compared to 35.3 million cases sold in the same window last year. However, IML sales declined to 54.55 million cases in 2026 from 54.74 million cases in 2025 during the same period.

Beer sales increased the total excise collection for the period to ₹ 3,745.14 crore from ₹ 3,261.24 crore in the same period last year.

The weather factor

“The huge increase in beer sales was due to the combined factor of fall in beer prices and the heat conditions prevailing in the state during this period. We expect beer sales to decrease in the coming months if cool conditions prevail due to monsoon rains. A clear picture will emerge in the next few months,” Excise sources said, adding that the cool conditions came in early May last year due to early rains. “This resulted in a decline in beer sales. Later, floods added to the decline in beer sales,” the sources added.

In fact, total beer sales fell to 399.29 million units in 2025-26, down 11.3% from the 450.36 million units sold in 2024-25.

Low-alcohol and IML beer prices fell after the state government introduced excise duty reforms, bringing in “alcohol-in-beverage” prices instead of slab taxation. A large volume of high-alcohol liquor in the state, which falls under the first four excise slabs, is consumed by the masses and drives excise collection.

Sources said that after the price revision, a new trend is being observed in the state. “It is only an early trend that could change in the coming months.”

Published – 22 Jun 2026 19:31 IST