Karnataka liquor sales hit record high as excise revenue surpasses US$370.3M 

INDIA – Karnataka has recorded an unprecedented surge in liquor sales, with the state generating its highest-ever alcohol revenue within a 30-day period under the new Excise Policy. 

The Excise Department collected more than Rs 3,500 crore in a single month, driven by a sharp rise in consumption and a revised taxation framework that links duties to alcohol content. 

According to official figures, liquor sales between May and June broke all previous records, marking one of the strongest revenue performances in the department’s history. The new excise structure has been credited with significantly boosting collections while maintaining strong consumer demand. 

“The revised policy taxes alcoholic beverages based on their alcohol content, which has contributed to higher revenue generation,” an excise department official said. 

Despite price revisions across several categories, demand remained strong, leading to a notable increase in overall sales volumes. Industry representatives estimate that the liquor market in the state has expanded by nearly 20 percent over the past month. 

Retailers and bar operators reported increased customer footfall and stronger sales across multiple segments, with beer and Indian Made Liquor (IML) showing the most significant growth. 

One of the most notable trends was the sharp rise in beer consumption. Data shows beer sales between May 11 and June 11 increased by nearly 59.4 percent compared to the same period last year, with about 403.1 lakh litres sold across the state. 

IML sales also grew substantially, reaching 443.5 lakh litres during the same period. The combined effect of higher volumes and revised taxation has pushed excise revenue to record levels. 

Last year, Karnataka generated approximately Rs 3,022 crore during the same period. This year, revenue rose to Rs 3,509 crore, reflecting an increase of nearly Rs 500 crore in just one month. 

Industry stakeholders said demand remained resilient despite price increases on several lower-priced liquor brands under the new tax regime. 

“The growth in sales has been supported by strong consumer demand and seasonal factors,” a liquor trade representative said. 

Business owners across bars, restaurants, and retail outlets reported improved earnings, attributing the surge to the summer season and evolving consumption patterns. 

While excise authorities credit the revised taxation model for the record revenue, industry observers point to multiple contributing factors, including high temperatures that boosted beer consumption and sustained demand for alcoholic beverages across urban and semi-urban markets. 

The government maintains that the new policy is designed to improve revenue efficiency while ensuring long-term stability in the state’s liquor industry. 

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