Beer prices in Karnataka have been increased starting Monday, with new rules in place regarding the cost of beer and its ingredients. This follows a change in the state’s excise duty system, which was first proposed in August 2024 and finalized in January 2025.
Under the new system, beer prices will be based on alcohol content. Beers with alcohol content of 5% or less will have an excise duty of Rs 12 per liter, while stronger beers with alcohol content between 5-8% will face a higher duty of Rs 20 per liter. Previously, the excise duty on all beers was the same, set at Rs 10 per liter.
As a result, the price of stronger beers is going up. For example, Legend beer, which used to cost Rs 100 for a 650ml bottle, will now be priced at least Rs 145. Premium beers are not expected to see a significant price change.
In another major shift, breweries are now required to ensure that beer is made with no more than 25% sugar by weight. The sugar content can even be zero. Additionally, breweries must clearly label their ingredients, with a deadline to comply by February 1, 2025.
The price hikes and the new sugar limit are partly aimed at discouraging younger people from drinking beer, as beer is often their first introduction to alcohol. The government also explained that strong beers, which make up 75% of beer sales in the state, are sometimes made with high sugar levels, which can be harmful to health.
This marks the third increase in beer prices in Karnataka since mid-2023, with previous hikes introduced in July and January. The government has also been adjusting prices of Indian Made Liquor (IML), and the latest price hike aims to boost excise revenue, which has been lower than expected so far in 2024-25.
