Karnataka: State Government Records 60% Decline in Liquor Sales Since The Last Two Weeks

liquor shops

After record sales in the first three days of reopening of the liquor shops, Karnataka has seen a 60% dip in sale since the last two weeks. From a business of Rs 232 crores on May 6 to a revenue of just Rs 61 crores on May 20, the steep dip is being attributed to the rise in prices of alcohol.

Massive opening to liquor shops in the state

After the Central Government permitted the opening of wine shops at the beginning of the month, thousands queued up in front of shops across the state to get their hands on the bottles. After a record Rs 45 crore collection on Day 1, the numbers went up in the subsequent days. However, as per the latest reports, the numbers have taken a steep dip in the last few days.

Courtesy: Sarkari Paper

60% decline in sale

On May 6, the government had increased ad valorem rates by 21%-31%. This saw prices going up from Rs 50 to Rs 1000 per bottle, depending on the brand. Although Beer was spared from the hike, the revenue was still far from the target.

As per data, 38 lakh litres of IML were sold on May 6 but only 25 lakh litres on May 20. The government’s plan to increase revenue by increasing the Additional Excise Duty seems to have backfired. However, this does not seem to be the only reason for the dip according to a few experts. Only 50% of the liquor shops in the state are open, something that might have caused the dip in business. Also, the large scale migrant-movement could have also affected the sales.

The State Government is now fearing that it may not be able to meet the monthly revenue target of Rs 1900 crores. There is a possibility that the government might fall short by Rs 400 crores.

Source: India Times