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

Karnataka reports a 14.59% drop in beer sales, citing Andhra's excise policy and adverse weather conditions as key factors.

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.