Beer sales drop by 14.59% in Karnataka; govt. cites Andhra excise policy, weather

The Karnataka government on Thursday acknowledged a decline in liquor sales in the State, attributing the drop in beer sales to the new excise policy in Andhra Pradesh, as well as heavy rains and colder weather conditions in some districts.

Replying to a question from Congress member Nagaraj Yadav in the Legislative Council, Floor leader N.S. Boseraju answered on behalf of the Excise Minister.

He said that as per the latest figures, the State had generated ₹37,531 crore in excise revenue, which is about ₹4,000 crore short of the target set for the current financial year. “Compared to the previous year, beer sales have declined by 14.59% as of January-end in 2025-26,” he said.

Mr. Boseraju said the government had constituted a Resource Mobilisation Committee to analyse the current tax structure and suggest measures to improve revenue collection. Further steps will be taken after examining the committee’s recommendations, he added.

He said the new excise policy in Andhra Pradesh had affected liquor sales in border districts such as Kolar, Chickballapur, Tumakuru, Chitradurga, Ballari, and Raichur, as fewer customers from neighbouring States were travelling to Karnataka to purchase liquor.

In some districts, excess rainfall and unusually cold weather had contributed to the decline in beer consumption, he said.

The government has also taken steps to curb the illegal transportation of liquor from Goa. The Excise Department has established three permanent excise checkposts in border areas, and vehicles travelling on highways are being inspected. Staff at these checkposts are rotated every 15 days to ensure effective enforcement, Mr. Boseraju said.

He added that arrack production, sale, and consumption are permitted in Andhra Pradesh and Telangana, and steps are being taken to prevent its entry into Karnataka. Public awareness campaigns are also being conducted in villages and wards about the harmful effects of consuming arrack mixed with chloral hydrate (CH) powder, which is reportedly available in those States.

Vehicle and person checks in border areas have been intensified to prevent such substances from entering the State, he added.