Liquor sales in Karnataka’s districts bordering Andhra Pradesh are falling sharply, mainly because of Andhra’s new liquor policy that offers cheaper and better-quality alcohol.
In districts like Ballari, Chitradurga, Tumakuru, Kolar, and Chikkaballapura, local liquor shop owners say their regular customers are now heading across the border to buy alcohol at much lower prices. Andhra Pradesh, under its new excise policy rolled out by the Chandrababu Naidu-led government, has allowed more than 3,000 new private liquor outlets and significantly reduced prices — with some bottles starting as low as ₹99.
While Karnataka sold about 708.85 lakh cases of liquor this year — a mere 0.47% increase over the previous year — shop owners in the border areas are reporting losses. Contributing factors include Karnataka’s repeated excise duty hikes and reduced rural spending due to falling agricultural prices.
Liquor shop owners who had earlier moved closer to the Andhra border to attract customers now find themselves losing business. For example, Vishwanath, who runs a bar near Kolar, said his regular customers are now heading to Andhra for better deals.
Karnataka’s Excise Department is now looking into the issue. Officials say districts like Kolar have already reported a 10% drop in liquor sales since Andhra’s policy took effect on October 12, 2024.
The Karnataka government is assessing the financial impact as this decline affects excise revenue, which is a key income source for the state. With Andhra offering lower prices and better supply, Karnataka’s border liquor trade is under increasing pressure.
