Authorities blames rain; trade blames taxes as Karnataka’s beer gross sales drop 20%

As of December 8, Statewide beer gross sales for the monetary yr stood at 264.17 lakh circumstances in quantity, amounting to ₹5,551.18 crore in worth
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Beer gross sales in Karnataka have plunged practically 20 per cent this yr, and trade gamers say steep tax hikes — now raised 5 occasions in underneath two years — and never climate modifications, are accelerating the slowdown.

Based on media studies, Karnataka Excise Minister RB Timmapura mentioned on Monday that the State offered 195.27 lakh packing containers of beer as much as September 2025 — 47.46 lakh packing containers fewer than the identical interval final yr, reflecting a 19.55 per cent decline. He attributed the drop to heavy rainfall and cooler climate this yr.

The Minister made the assertion in a written reply to opposition chief whip N Ravikumar and MLC KS Naveen, who raised considerations underneath Rule 330 concerning the rising variety of alcohol customers affected by liver cirrhosis and jaundice, and steered earmarking not less than 20 per cent of Excise revenues for his or her therapy.

Gross sales hunch

Vinod Giri, Director Basic of the Brewers Affiliation of India (BAI), shared that beer gross sales have been on the downswing since February and March, when the fifth tax improve got here into power. BAI is an trade physique representing giant beer makers like AB InBev, Carlsberg, and the United Breweries (a Heineken firm).

“In lower than two years, taxes have elevated 5 occasions, which has severely impacted the value of many beers; on common, the value has elevated from ₹175 to ₹200. That can have an effect on the market. Whereas illicit liquor, paua, sells for ₹95 at 180 ml, a beer sells for ₹200. If nothing occurs, the efficiency will worsen,” he commented.

Tax overload

In July 2023, the extra excise obligation (AED) on beer shot up from 175 to 185 per cent. In January 2025, the excise obligation was once more elevated by ₹78 per case or ₹10 per bulk litre. And now the state authorities has proposed an imposition of 10 per cent AED on all beers offered within the state, making this the third hike in over two years. 

Giri added that the Karnataka authorities has fashioned a useful resource mobilisation committee to evaluate the excise coverage. “We’ve got put ahead our views,” he mentioned.

Based on Karnataka State Drinks Company Restricted (KSBCL) knowledge, as of December 8, 2025, statewide beer gross sales for the monetary yr stood at 264.17 lakh circumstances in quantity, amounting to ₹5,551.18 crore in worth.

With inputs from PTI

Printed on December 9, 2025