The sale of beer in Karnataka, the prices of which dropped after rate rationalisation and the introduction of the “Alcohol in Beverage” (AIB) regime, has seen a 41.32% rise in the first six months of this financial year compared to the corresponding period of 2025. However, the sale of Indian Made Liquor (IML) grew by only 1.14%. During this period, overall excise revenue collection increased by 14.35%.

The marginal growth in IML sales is being attributed to the increase in the cost of high-alcohol-content IML, which earlier came cheaper and was widely consumed, and which constituted over 70% of total IML sales.

The AIB regime implemented in Karnataka imposes excise duty based on pure alcohol content. This has resulted in high-alcohol-content IML, which is mass-consumed, becoming more expensive, while the prices of premium brands with lower alcohol content have become cheaper. The AIB regime, part of the excise reforms, is linked to the social cost and impact of alcohol consumption, which has been worked out by a committee.

Cases sold

According to data from the Excise Department, beer sales increased from 195.27 lakh cases between April and September 2025 to 275.96 lakh cases between April and September 2026, recording a growth of 41.32%. The July-September quarter alone saw a 49.69% increase, with 126.68 lakh cases of beer sold compared to 84.63 lakh cases during the corresponding period last year.

However, the sale of IML went up marginally from 342.93 lakh cases between April and September 2025 to 346.83 lakh cases, an increase of 1.14%. In the first quarter of 2026, IML sales grew by just 0.77%, with 175.14 lakh cases sold against 173.81 lakh cases in the first quarter of 2025.

Overall revenue

In terms of revenue, the Excise Department reported an overall increase of 13.39%, with ₹22,191 crore collected between April and September 2026 against ₹19,570 crore during the corresponding period of 2025.

While the sale of IML saw only a marginal rise, revenue from IML increased by 13.32%, with ₹17,424 crore collected in 2026 against ₹15,376 crore in 2025.

Revenue from beer sales increased from ₹2,836 crore in 2025 to ₹3,377 crore in 2026, marking an increase of 19.08%.