Karnataka Liquor Sales: Gadag Records ₹340 Crore Revenue Despite Price Hike, Demand Remains Strong

Gadag district in Karnataka recorded ₹340 crore in liquor sales in 2025 to 2026 despite a price hike. While sales volume dipped slightly, higher prices boosted revenue. Beer sales declined, raising concerns, but overall demand for liquor remained strong.

In a striking trend that highlights the resilience of liquor demand, Gadag district has recorded nearly ₹400 crore in alcohol sales during the 2025 to 2026 financial year. Despite recurring drought conditions and rising prices, liquor consumption in the district has remained strong, underlining the Excise Department’s role as a major revenue generator for the state government. The figures show that even significant price hikes have done little to reduce consumer demand.

From April 2025, the state government increased the prices of various categories of liquor and beer. However, this did not deter consumers in Gadag, who continued to purchase alcohol in large quantities.

Revenue Rises Despite Slight Dip In Sales Volume

Interestingly, while the number of liquor and beer boxes sold in 2025 to 2026 saw a slight decline compared to the previous financial year, overall revenue recorded a sharp increase due to higher prices.

In the 2024 to 2025 financial year, 8.40 lakh boxes of Indian Made Liquor (IML) were sold, generating ₹306.34 crore. In 2025 to 2026, sales dipped marginally to 8.35 lakh boxes, a decrease of around 5,000 boxes. However, owing to the price hike, total revenue rose to ₹340.54 crore, resulting in an increase of nearly ₹35 crore from liquor sales alone.

Price Hike Impacts Beer Sales

The impact of the price hike was more visible in the beer segment. The Excise Department recorded a decline of ₹3 crore in revenue compared to the previous year, mainly due to reduced sales volumes.

In the 2024 to 2025 financial year, 4.09 lakh boxes of beer were sold, generating ₹50.05 crore. In 2025 to 2026, sales dropped significantly to 3.38 lakh boxes, a decline of 71,000 boxes, bringing total revenue down to ₹47.05 crore.

Official Statement

“We have met our district target. While liquor sales volume saw a slight dip, the financial turnover remained strong and revenue collection was robust,” said Excise Deputy Commissioner Lakshmi N.

Liquor Sales Data (in boxes)

Zone - 2025-26 - 2024-25

Gadag - 293535 - 294012

Mundargi - 104099 - 106798

Nargund - 97085 - 98484

Ron - 173831 - 171667

Shirhatti - 166109 - 169667

Beer Sales Data (in boxes)

Zone - 2025-26 - 2024-25

Gadag - 141172 - 170509

Mundargi - 30782 - 36198

Nargund - 28748 - 34537

Ron - 79671 - 96839

Shirhatti - 62433 - 73635

Strong Demand Keeps Revenue Flowing

Despite a marginal drop in consumption volumes, Gadag’s excise revenue has grown significantly due to price revisions. The data reflects a broader trend where demand for liquor remains largely unaffected by price increases, continuing to contribute substantially to the state’s revenue.