Karnataka, India: Beer prices will increase by 10-20%
2025-1-14
The price of beer in the Indian state of Karnataka, which includes the capital Bangalore, is set to rise again. The state government has issued a notice in this regard. As the government notice will come into effect on January 20, 2025, beer prices in Karnataka will increase by 10-20% at that time.
The price of EOE beer in Karnataka is likely to rise as the state government has issued a final notice on price hikes. Beer prices in the mainstream and high-end markets could rise by 10 to 20 per cent. This is the third time in a year that beer prices have gone up in Karnataka. The government has issued a final notice on the price increases of beer brands. The new beer price will come into effect on January 20, 2025. The draft amendment proposes dividing beer into three subcategories and imposing a uniform consumption tax on each subcategory.
Karnataka Excise Minister RB Timmapur, however, confirmed that no other decision had been made. Meanwhile, the Beer Association of India, which represents major brewers, has asked the Karnataka government to withdraw the price hike notice. The association said the price increase is not in the interest of consumers and will adversely affect the local business environment.
The Beer Association of India said that due to the increase in prices, beer consumption will be reduced and therefore tax revenue will be reduced. It is expected that taxes in the beer category will be reduced by as much as Rs 4 crore. In addition, it warned that investments of over Rs 5,000 crore in 10 breweries in the state would be at risk and future investments in the state would be questioned. High prices hurt sales and manufacturing activity will be reduced. This will have a negative impact on trade and the hospitality industry.