Experts link declining liquor sales to repeated price hikes, despite excise revenue rising, with the ₹40,000 crore target challenging
BENGALURU
Liquor sales in Karnataka have seen a significant decline over the past seven months, raising concerns for the state government’s revenue collection. The Excise Department, which contributes about 20 percent of the state’s treasury, has recorded lower sales compared to last year.
Data shows that from April to October 2024, 407.40 lakh boxes of Indian Made Liquor (IML), including whiskey, rum, brandy, and gin, were sold. During the same period in 2025, sales fell to 403.04 lakh boxes, a drop of 4.36 lakh boxes. The decline is even sharper in beer sales, which fell from 279 lakh boxes in 2024 to 228 lakh boxes in 2025—a drop of 51 lakh boxes.
Experts and sellers attribute the decrease mainly to repeated price hikes by the Siddaramaiah government since taking office. Liquor prices have been increased three to four times to generate revenue for government schemes. While the excise department collected Rs 35,530 crore in 2024-25, it had collected Rs 34,629 crore the previous year. The current year’s target is Rs 40,000 crore, but falling sales make it challenging to achieve.
Some observers also suggest that changing consumer habits, alternative beverages, and the cannabis-opium epidemic may have contributed to declining demand. Historical data shows IML sales have been falling over the past three years, from 410.78 lakh boxes in 2023 to 403.04 lakh boxes this year, indicating a continuing downward trend in Karnataka’s liquor market.
