Shock for Beer lovers in Karnataka: Govt increases price by Rs 10-20, marking 5th rise in 17 months

By Vinaykumar Patil | First Published Jul 30, 2024, 11:15 AM IST

Beer prices in Karnataka have surged again, marking the fifth increase in 17 months. The latest rise of Rs 10 to 20 follows a previous hike just a month ago. Prices have climbed by about Rs 60 since the Congress government took office, driven by higher duties and rising production costs.

The Karnataka Congress government has hiked the beer prices once more in the state, marking the fifth increase in the past 17 months. The latest adjustment sees beer prices rising by Rs 10 to 20, following a previous increase just a month ago.

This new price surge comes as beer manufacturing companies grapple with rising raw material costs. The ongoing price hikes have been a recurring trend, with the cost of beer climbing by about Rs 60 since the Congress government took office after the recent state assembly elections.

Karnataka: Relief for alcohol consumers as state government freezes liquor prices until further notice

Tap to resize

Latest Videos

Tap to resize

The increase began with a 20 per cent additional duty on beer imposed by the government. This duty hike led to an initial rise in beer prices. To manage rising production costs, beer manufacturers subsequently raised the price by at least Rs 10 per bottle. Further compounding the issue, the government imposed another duty increase in February, resulting in another price rise. Now, companies have decided to raise prices once more, leading to an overall increase of around Rs 60 over the past 15 months.

In June, the Karnataka government planned to adjust liquor prices but was taken aback by the backlash against the proposed hike.

Karnataka Budget 2024: Government announces revised tax slab on liquor

Initially, the Excise Department intended to implement the changes starting June 1. The proposed adjustments included reductions in prices for some slabs and increases for others. However, despite issuing a draft notification for this rate revision, the changes have not yet taken effect.

The government planned to lower the prices of higher-end brandy, whiskey, gin, and rum while increasing the prices of some other brands.

For more reliable and latest news