Bengaluru, 06 Oct (H.S.): Karnataka recorded a 41.32 per cent increase in beer sales during April–September, compared with the corresponding period last year, following price reductions under the state’s Alcohol in Beverage (AIB) policy.

Beer generated excise revenue of Rs 3,377.88 crore in the first six months of the financial year, against Rs 2,836.64 crore a year earlier, an increase of Rs 541.24 crore.

Overall excise revenue rose 13.39 per cent to Rs 22,191.63 crore from Rs 19,570.23 crore during the same period last year. The total includes receipts from Indian-made liquor, beer, licence fees, fines and other sources.

The excise department has set a revenue target of Rs 45,000 crore for 2026–27. With collections approaching half that figure within six months, revenue is expected to rise further during the forthcoming festive season.

Implemented on May 11, the AIB policy reduced maximum retail prices of lager beers containing five per cent alcohol and certain premium liquor products, including Scotch whisky.

Beer sales increased 34.92 per cent during April–June and accelerated to 49.69 per cent during July–September, taking growth for the six-month period to 41.32 per cent.

In comparison, Indian-made liquor sales registered a modest volume increase of 1.14 per cent during April–September.

Revenue from this segment, however, increased to Rs 17,424.57 crore from Rs 15,376.22 crore in the corresponding period last year, showing that sales volumes and revenue followed different growth patterns.

Sources said revenue growth in the Indian-made liquor segment was driven by the first four price slabs, covering products priced between Rs 90 and Rs 165 for a 180 ml bottle.

These categories contribute more than 70 per cent of total excise revenue, the sources said.

Karnataka determines Indian-made liquor prices and taxes through a slab-based system, making these lower-priced categories particularly significant to the state’s overall excise collections.

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Hindusthan Samachar / Arun Lakshman