The Karnataka government has decided not to raise beer prices through the winter season, even though beer sales typically dip by 10-20% in colder months. This decision is meant to prevent further slowing down of beer sales, which are expected to drop even more in January, the coldest month. While the state’s Excise Department had considered increasing prices to make up for potential revenue losses, it has opted to keep prices stable until January 2025.
The move comes in light of the government’s revenue goals for the year. With only half of the Rs 36,000 crore target achieved so far, officials are trying to avoid worsening the financial situation by increasing prices when sales are already low. Keeping beer prices steady is viewed as a way to minimize the negative effects of the slowdown in consumption on overall excise revenue.
