Ahead of Christmas and New Year revelry this year, Karnataka reported a sale of about ₹1,669 crore worth of IML and beer in the last week of December, an increase by 8.94 % over the corresponding period of 2024, while the excise revenue collection increased by 10.19 %.
This despite the volume of sale of IML declining by 3.17 % and beer showing a modest growth of 1.5 % when compared with the figures in the corresponding period. However, the overall growth rate in sales of IML and beer for the year continue to be in the red.
In contrast, the IML and beer sales had recorded 5.95 % and 6.61 % growth in the last week of December in 2024 compared to the corresponding period of 2023. Incidentally, the December 2023 sales of beer in the period had shown a steep decline of 7.43 % while the IML had reported a growth of 5.92 % over 2022.
Data shared by the government showed that 22.59 lakh carton boxes of IML and 15 lakh carton boxes of beer were sold across the State between December 23 and December 31. While the total sales volume (both IML and beer) in the period was ₹1,668.99 crore, an increase by 8.94 % over the corresponding period of 2024, excise revenue realised was ₹1,319.11 crore, an increase by 10.19 % over the corresponding period of last year.
Meanwhile, the growth rate in sale of liquor this year has continued to take the beating. While the sale of beer between April and December, 2025 declined by 16.40 %, the IML sales declined by 0.98 % over the corresponding period of 2024.
Volume wise, the sale of IML dropped by 5.16 % with sales of 522.66 lakh carton boxes against 527.82 lakh carton boxes sold between April and December. The sale of beer has shown a steep decline by about 16 .4 %. Against the sale of 351.07 lakh carton boxes between April and December in 2024, the sale of beer has come down to 293.48 lakh carton boxes.
Between April and October 2025, beer sales came down by 18.35 % and sales of IML had declined by 1.07 % over the corresponding period of 2024.
In 2024, a total of 708.85 lakh carton boxes of IML and 450.36 lakh carton boxes of beer were sold.
In the 2025-2026 financial year, the government has set an excise revenue collection target of ₹40,000 crore. Apart from the increase in excise revenue due to rate rationalisation, the department is also auctioning 569 liquor licenses for retail vends and bars that is expected to mop up between ₹600 crore and ₹1,000 crore.
The Excise Department sources attributed the steep decline in sale of beer to heavy rainfall and flooding across the State, especially in Kalyan Karnataka region. Besides, the revision of excise duty slabs that has pushed the price of liquor in certain categories of IML has led to overall modest or negative growth. “The beer sales did not pick up in summer months and after the dip in temperature due to good rainfall, the sale of beer continued to be hit. Floods affected the sales too,” sources said.
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