“We sincerely urge policymakers in the state to reconsider the decision of canceling the third shift operation. This decision will significantly impact the state’s thriving beer industry, jeopardise employment and cause a shortage of beer around Christmas, New Year and beyond, which makes for the peak beer season,” an official from a top beer company said.
“This will also potentially steer retailers and consumers towards stronger alcoholic beverages,” the official added.
This is being seen as the government’s manoeuvre to shore up sales of Indian-made Liquor (IML), such as rum and whisky, which brings in more revenue compared with beer.
In the current fiscal, the excise revenue target is Rs 36,000 crore. Between April and November, the government mopped up Rs 22,157.25 crore. Much of this is from IML at Rs 17,864.48 crore against beer’s Rs 3,515.76 crore.
In the previous 2022-23 fiscal, the government earned Rs 29,920.37 crore as excise revenue, which included Rs 24,663 crore from IML and Rs 4,460 crore from beer.
Karnataka is considered among India’s top beer markets. According to the latest industry estimates, the state consumers around 3.8 hectolitres of beer annually, which is roughly 11 per cent of the national volume.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
