Karnataka Reduces Beer and Whiskey Prices by Up to 25% Under New Alcohol Policy
Karnataka govt slashes beer, whiskey prices by up to 25%; check new rates under alcohol- content-based excise policy
Mint
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The Karnataka government has announced a price reduction of 20-25% on mild and lager beers and premium Scotch whiskies, effective May 11, under its new Alcohol in Beverage (AiB) policy. This shift to an alcohol content-based pricing model aims to make premium brands cheaper while increasing prices for lower-end liquor, impacting consumers across the state.
- 01Karnataka becomes the first state in India to implement the Alcohol in Beverage (AiB) pricing model.
- 02The MRP of popular beers like Kingfisher and Heineken has dropped significantly, with reductions ranging from ₹20 to ₹75.
- 03Premium Scotch whiskies like Black Label and Chivas Regal have seen price cuts from ₹5,190 to ₹4,100.
- 04The number of Excise slabs has been reduced from 16 to 8, impacting the classification of alcohol pricing.
- 05Concerns have been raised by the Karnataka Brewers and Distillers Association regarding increased duties on budget liquor.
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The Karnataka government's Excise Department has implemented a significant reduction in alcohol prices, with mild and lager beers seeing cuts of 20-25% and premium Scotch whiskies dropping from ₹5,190 to ₹4,100. This change, effective from May 11, is part of the new Alcohol in Beverage (AiB) policy, which shifts the pricing model from a bulk litre basis to one based on alcohol content. Popular beer brands such as Kingfisher, Budweiser, and Heineken have all seen varying price reductions, while premium brands are expected to become more affordable. However, the policy also anticipates a 20-30% increase in the prices of cheaper Indian Made Liquor (IML), affecting lower-income consumers the most. The state has reduced its Excise slabs from 16 to 8, aiming to streamline alcohol pricing. Despite these changes, the Karnataka Brewers and Distillers Association has expressed concerns over the increased tax burden on budget liquor, which they argue could threaten local producers while benefiting multinational companies.
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The price reductions on premium alcohol may benefit higher-income consumers, while lower-income individuals could face increased costs for budget liquor.
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