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Liquor sales hit doldrums over hike in excise duty

Liquor sales hit doldrums over hike in excise duty

Time of India24-05-2025

Mangaluru: The steep hike in liquor excise duty, decline in fisheries activity-related jobs, curb on liquor flow to neighbouring state, and restrictions in the city and other parts of the district during nights resulted in the sale of Indian Made Liquor (IML) being stagnant for four years.
According to available statistics, sales consistently remained at 27 lakh cases or boxes from the financial year 2021-22 to 2024-25, showing no significant growth. The substantial rise in excise duty is expected to cause a further decline in sales. The impact of Covid-19 was evident in 2020-21 when sales dropped to approximately 22 lakh cases due to the closure of liquor establishments. However, beer consumption showed a contrasting trend, with sales figures doubling since the pandemic period, reaching 24.3 lakh cases in 2024-25.
As per the excise department statistics, IML sales were 22,81,967 in 2020-21, which increased to 27,07,466 cases in 2021-22. From here onwards, the sales remained stagnant with just a little improvement of boxes in thousands. In 2022-23, the sales of IML was 27,46,253, saw little improvement, and was 27,58,553, but it dropped to 27,21,033 in 2024-25.
The primary factor is the reduction in fisheries and other blue-collar employment opportunities.
Additionally, individuals travelling from foreign countries or different states are procuring their alcohol from alternative sources. The early closure requirements imposed on establishments serving alcohol in Mangaluru and neighbouring districts have adversely affected sales. According to TM Srinivas, deputy commissioner of the excise department in Dakshina Kannada, these combined elements have resulted in diminished IML sales.
Another official from the excise department said that close to 30% of liquor sales from Dakshina Kannada were earlier due to the flow of liquor to neighbouring states. However, it has stopped as the prices in Kerala are lower than Karnataka.
Officials from the excise department expect that the recent hike in the license fee for all types of liquor outlets will be detrimental to sales.
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