BENGALURU: Liquor sales in Karnataka saw a downward trend last year in comparison to the previous fiscal. According to the statistics from the Excise Department, between April and December last year, the department collected Rs 26.633 crore against the revenue target of Rs 38.525 crore for 2024-2025, which is 69.13% of the target.
In the financial year 2023-2024, the department had collected Rs 24.455 crore as against the revenue target of Rs 34.500 crore, which was 73.78% of the target.
December is regarded as the most buoyant month in the state excise calendar with Christmas and New Year’s Eve as the highlights around which alcohol sales peak.
But in December last year, the Karnataka State Beverages Corporation Ltd (KSBCL) logged in only 61.82 lakh case boxes (CBs) of Indian Made Liquor (IML) as against 64.35 lakh boxes in December 2023 registering a negative growth of 3.93% in the month. One case box contains around 9 litres of liquor.
According to official data, KSBCL sold 527.82 lakh CBs between April and December in 2024 as against 533.26 lakh CBs in the corresponding period in 2023 registering a negative growth of 1.02%. Beer sales saw a 8.22% increase between April and December 2024 with 351.07 lakh CBs sold as against 324.4 lakh CBs during the corresponding period in the previous year.
According to informed sources, the dip in sales of IML is largely owing to “sprouting of alcohol shops by the Andhra Pradesh government at AP-Karnataka border with IML sold at competitive prices in comparison to Karnataka. Border districts like Chikkaballapur, Kolar, Ballari and Tumkaru are seeing fall in alcohol sales. Similarly, districts bordering Goa are also seeing dip in sales,” said sources on condition of anonymity.
In October last year, Chief Minister Siddaramaiah, who also holds the finance portfolio, had asked officials of top revenue generating departments — commercial taxes, excise, stamps and registration, transport and mines and geology to accelerate revenue collection and warned them that they would be held accountable if targets are not met. Excise, which contributes 20% of revenue to the state exchequer, is faced with realising an unprecedented revenue target of Rs 38.525 crore for the current fiscal 2024-2025.
“It is a challenge to realise 100% of the huge revenue target this fiscal. We now look forward to rural festivals during which there is a rise in alcohol sales and consumption. By March end, we hope to realise around Rs 37 crore. It is a tall expectation though,” added sources. The lowest four slabs of IML contribute more than 80% of the revenue to the department.