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Beer price hike in Karnataka postponed until next year

29th November 2024
Fermentis

The Indian state says it will keep beer prices unchanged until the end of January 2025

The Karnataka government has confirmed that it will not be increasing beer prices until the end of January 2025 at the earliest, so as not to exacerbate the usual decline in beer sales during this period.

Historically, beer sales decrease by between 10 and 20 percent during the winter months, as the colder weather leads to reduced consumption of beer.

Karnataka’s Excise Department has been under increasing pressure to increase its excise revenue collection and had previously considered raising prices to offset the potential losses caused by the dip in beer revenue, but it has now been decided to maintain the current price levels through January.

The state government’s decision to keep beer prices unchanged comes as a response to the expected slowdown in beer sales in January, typically the coldest month of the year, when beer consumption tends to be at its lowest.

This has raised concerns over potential revenue shortfalls. By not raising prices during this time, however, the government hopes to avoid accelerating the sales decline and maintain a more consistent revenue.

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