Beer prices in Karnataka set to rise by ₹30, premium liquor rates may drop up to 20%: Reports

Beer prices in Karnataka are expected to rise soon but premium liquor will get cheaper as the state government is set to announce a revision of rates, The Hindu reported.

Beer prices will rise around ₹10 to ₹30 per bottle while the price reduction on premium liquor is expected by as much as 20 per cent due to the proposed revision, aimed at promoting Indian Made Liquor (IML) sales.

The beer price hike will depend on the brand and alcohol content.  The development comes just days after Karnataka Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar announced that a water tariff will be imposed and water prices will rise by as much as 20-30%.

It may take some time for the new prices to be fully effective as the updation of the rates is still in the process. The government move is in response to a long-standing demand from stakeholders, according to the report. The revision is aimed at reducing the costs of some popular liquor brands, in turn boosting excise revenue, as per the report.

Initially, August 27 was the deadline for implementing the new beer prices, which would possibly align liquor prices in Karnataka with those in neighbouring states, ABP Live reported. However, new supplies of liquor with the revised rates have reportedly not been delivered to merchants. A final decision on beer pricing will be made only after all stakeholders submit their objections and feedback on the proposed changes.

Beer sales in Karnataka have more than doubled in the past two years. According to a Deccan Herald report, the surge in beer demand can be attributed to a change in consumer behaviour in the post-Covid period and a rise in summer temperatures.

At present, a uniform rate is applied to all beer in the state. However, the Excise Department proposed a revised pricing model that introduces three distinct price slabs based on the alcohol content. Moreover, an increase in the Additional Excise Duty (AED) for both bottled and draught beer is likely, which would add to the expected price rise.