Beer prices likely to go up in Karnataka starting from January 20: Report

Premium brands could see hikes of ₹10 to ₹50 from January 20, even as the state has recently reduced Indian Made Liquor prices to enhance sales.

Beer enthusiasts in Karnataka may soon have to shell out more for their favorite brews, as the state government is likely to increase beer prices once again. The draft notification proposing a hike in beer duty was released in August 2024, and the final notification confirming the increase was issued recently, reported Deccan Herald. The revised rates will come into effect starting January 20.

Beer drinkers will have to pay extra money in Karnataka as prices are likely to go up. (Pixabay)

According to the report, the retail prices of select premium beer brands are expected to rise by ₹10 to ₹50, depending on the brand.

This development follows the government's recent decision to slash Indian Made Liquor (IML) prices by up to 25% to stimulate sales. With beer sales reaching record highs in the past two years, the state government appears to be aiming to capitalize on this growing market, the report further said.

Despite objections from the Brewer's Association of India (BAI), which argued that the proposed hike would make Karnataka's beer prices among the highest in the country and potentially harm sales, the government has proceeded with the price increase.

Detailed breakdown of the new duty structure:

₹12 per bulk litre for beer with an alcohol content below 5%.

₹20 per bulk litre for beer with an alcohol content between 5% and 8%.

An additional duty of either 195% or ₹130 per bulk litre (whichever is higher) for beer priced at ₹300 per bulk litre.

An additional duty of either 185% or ₹120 per bulk litre (whichever is higher) for draft beer with a declared price above a specified threshold.

This move is expected to impact beer pricing across Karnataka, prompting beer lovers to reassess their party budgets.

Karnataka's alcohol prices have been revised twice in the last two years. Liquor is most expensive in Karnataka compared to all other south Indian states.