Rs 1,600+ crore in 9 days: Why liquor boom increased in Karnataka on New Year. business News

As the calendar turned from 2025 to 2026, Karnataka also marked a high point in liquor sales, with the state seeing the strongest figures in 3 years over the New Year period. Data released by the Karnataka Excise Department shows a sharp increase in both selling prices and government revenue, underscoring how important the festival season has become for the state’s excise.

Between December 23 and December 31, liquor sales increased across Karnataka due to celebrations, parties and long holidays, keeping demand consistently high.

Revenue surge despite mixed consumption trends

During the last week of December, the total value of liquor sold in the state was Rs 1,668.99 crore, which included India-made wine and beer. This yielded excise duty revenue of Rs 1,319.11 crore to the state government. Compared to the same period in 2024, this represented a 10.19 percent increase in revenue, while the total sales value increased by 8.94 percent year-on-year.

What emerged is that revenue growth occurred despite uneven consumption patterns across categories. Officials say changes in pricing played a major role in increasing the collections.

Wine and beer made in India tell different stories

India-made liquor was the largest contributor in value terms, with around 22.59 lakh carton boxes sold during the period. However, the actual sales volume of IML has declined by about 3.17 percent compared to the previous year. Despite lower cartons being taken off shelves, higher prices ensured that revenues from this segment continued to grow.

Beer, on the other hand, showed modest improvement. Nearly 1.5 million carton boxes were sold, registering a volume growth of 1.5 percent. Excise officials say beer sales were hit due to unseasonal rains and floods in many parts of the state at the beginning of the year, making sales especially important in the new year.

December 31 provides one-day high

New Year’s Eve proved to be the biggest driver of sales. By the afternoon of December 31 alone, Karnataka State Beverages Corporation Limited recorded liquor sales worth Rs 308 crore. This easily surpassed the department’s internal target of Rs 250 crore for the day, highlighting the scale of last-minute festive shopping.

Officials say footfall at retail outlets began early in the morning, with steady demand continuing throughout the day despite increased enforcement and checks.

Bengaluru is ahead, but the districts have moved ahead

As expected, Bengaluru emerged as the biggest contributor, accounting for nearly 40 per cent of Karnataka’s total liquor revenue during the New Year period. On December 31 alone, Bengaluru urban district recorded sales of Rs 1.82 crore through state-run shops.

At the same time, smaller districts also recorded surprising numbers. In Raichur, a liquor shop located near the railway station sold liquor worth Rs 11.66 lakh in a single day, surprising even excise officials and underlining how widespread the festive surge was outside the capital.

Why did revenue increase despite changes in volumes?

Excise officials attribute the strong revenue performance mainly to the recent revision of excise duty slabs. Higher duties pushed up retail prices across many liquor categories, meaning that even stable or low volumes translated into higher collections for the state.

The new year’s performance is also important in the context of the state’s broader financial goals. For the 2025-2026 financial year, the Karnataka government has set an excise revenue target of Rs 40,000 crore, making festive periods like New Year a significant milestone.

Enforcement, policing and crowd control

Sales increased with strict enforcement. In the days ahead of the New Year, excise officials registered 1,294 cases across Karnataka for violations related to illegal sale and transportation of liquor. Illicit liquor worth Rs 2.28 crore was seized in the raid.

Over 2,000 police personnel were deployed in Bengaluru, especially on MG Road and Brigade Road, where the crowd numbered more than 1 lakh people, to manage traffic, prevent public nuisance and ensure security amid the massive gatherings.

A clear nod to the state treasury

Overall, the figures for the 2025-2026 New Year period underline how central liquor sales have become integrated into Karnataka’s revenue plan. The changing drinking patterns, pricing policy and festive demand also ensured that the New Year was celebrated with record breaking excise duty collections in the state.