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Karnataka plans a liquor price hike affecting slabs 1-4, with increases ranging from ₹10 to ₹25. Excise Minister Thimmapur defends the rise, stating prices are still lower than neighbouring states.
Bengaluru: The Karnataka government is set to revise the IML (Indian Made Liquor) and beer slab rates to align with those of neighbouring states. This marks the third liquor price hike under the current Congress government. The Excise Department is preparing to implement the revised rates within the next week.
The price revision will impact Slabs 1 to 4 among the existing 16 liquor price slabs. Slab 1, which is currently priced at ₹80, will see a ₹10 increase. Slab 2, presently at ₹155, will rise by ₹15. Slab 3, priced at ₹185, is expected to go up by ₹15 to ₹20, while Slab 4, currently at ₹235, will see a hike of ₹20 to ₹25.
The state had set a target of ₹38,600 crore for the Excise Department for the financial year 2024–25 and has now added an additional target of ₹1,400 crore. The department is citing this financial goal as the reason for the price revision.
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Liquor prices still lower than neighboring states: Excise Minister Thimmapur
Excise Minister R.B. Thimmapur, addressing the price increase, said that liquor prices in Karnataka remain lower than in Maharashtra, Andhra Pradesh, and Tamil Nadu, especially in the so-called “poor’s slab”. He clarified that premium brand prices remain unchanged.
Speaking to reporters in Bagalkot on Sunday, the minister said, “Beer prices have been slightly increased, with a ₹10 hike per bottle. Even with this change, our rates are still lower than those in neighbouring states.”
Will the price hike reduce the number of drinkers?
When asked whether the hike would reduce the number of drinkers, Minister Thimmapur said, “If the number of drinkers decreases, that is a good thing. The price revision also ensures we provide higher-quality liquor. Our products are of better quality than the ‘poor’s slab’. All governments have historically raised liquor prices, and ours is a modest hike.”
Wine merchants oppose liquor price hike proposal
Meanwhile, the Federation of Wine Merchants’ Association has urged the state government to drop the proposed hike. B Govindaraj Hegde, General Secretary of the Federation, wrote to the Principal Secretary of the Finance Department, urging the government to use scientific criteria when levying additional excise duty on IML and beer.
He stressed that consumers and informers should not be penalised for the negligence of excise officials and warned that higher prices may lead to an influx of counterfeit liquor from neighbouring states. Hegde also requested that the government consult with retailers before finalising any decisions, emphasising that they are in direct contact with consumers.
