Beer sales see sharp drop, but excise revenue goes up by 11.34 %

Heavy rainfall and floods in several parts of Karnataka, especially in Kalyana Karnataka region, besides steep hike in excise duty, are among the reasons for a whopping drop of beer sales by 18.35 % between April and October when compared to the corresponding period last year.

However, despite this, and a 1.07 % dip in the IML sales, the excise revenue collection has shown a 11.34 % growth over the corresponding period last year.

As per the data available with the Excise Department, the beer sales slacked from April, returning negative growth every month. In the seven months of 2025-2026 financial year, 227.62 lakh cases of beer were sold in comparison to 278.79 lakh cases sold in the corresponding period of 2024-2025, amounting to a dip by 18.35 %.

Though the IML sales also declined in the period, it has not been steep. Against 407.40 lakh cases sold in 2024-2025, 403.04 lakh cases were sold this year, a decline by 1.07 %. The decline in growth has been seen since June.

Rain impact

“Volume in beer sales dropped as several parts of State started receiving rainfall since March and summer months remained relatively cooler. During Monsoon months, people could not venture out in the evening in a number of place as it rained heavily. Added to it was floods, especially in Kalyana Karnataka region,” a senior official said.

The official also said that the period was also marked by beer producing companies stopping or reducing their sales schemes, which would normally boost offtake figure. “Enticing retailers and their families with foreign travel or offering free beer for a particular quantity, beer was being dumped in the market. This stopped bringing down the total offtake,” the official explained.

Revenue up

However, the excise revenue collection has grown by 11.34 % with total collection of ₹22,995 crore against ₹20,653 crore collected last year. The revenue growth has been attributed to the increase in excise duty in the first four of the 16 excise duty slabs.

“Nearly 85% of the excise revenue comes from the basic liquor that falls under the first four slabs. Increase in the duty in these slabs has ensured the revenue growth.” After the increase, the cheapest whiskey that is popular among consumers cost ₹ 80 for a 180 ml bottle, the official said.

On the impact of rationalisation of excise slabs that brought down prices of premium liquor on the overall sales, the official said that though there was some increase in offtake of premium brands, it did not grow as per expectations.