India: Beer and Indian Made Liquor see declining sales even after festive season in Karnataka

Karnataka’s State Excise revenue continues to register negative growth even after the festive season of Dasara, when traditionally liquor sales and consumption pick up every year, The New Indian Express reported on November 4.

There has been an unprecedented 13.94 per cent decrease in the sale of Indian Made Liquor (IML) and 38.91 per cent decline in the sale of beer between April and October this year compared to the corresponding period last year. This year between April and October, the Department through the Karnataka State Beverages Corporation Limited (KSBCL) has sold 301.84 lakh case boxes (CBs) of IML as against 350.73 lakh CBs during the same period last year.

Beer has taken a bigger hit than IML in the Covid year. The Department figures show that they have sold 104.09 lakh CBs between April and October this year as against 170.40 lakh CBs for the same period last year. One CB contains 8.64 litres of liquor.

The government this year had laid out an ambitious revenue target of `22,700 crore for 2020-21 for the Excise Department. But because of the pandemic and the subsequent lockdowns, the Department has barely managed to collect `11,698.18 crore, which amounts to 51.53 per cent of the annual target. Whereas by October 2019, `12,630.78 crore was collected as revenue, which was 60.29 per cent of the annual target of `20.950 crore for 2019-20.

The consumption and sale of IML and beer have not picked up even after five months of opening of liquor vends in Karnataka. Sale of liquor was heavily impacted due to the pandemic and the lockdowns from March 23 to May 5 when the government allowed the opening of retail liquor (CL2 licensees) and MSIL stores in the State. Pubs, bars and clubs were re-opened for serving alcohol to their dine-in customers only from September 1. From May 16, the watering holes, including microbreweries, were allowed to sell liquor as takeaway, but most of them remained closed for business till September 1.

“Business is now slowly picking up but there is no comparison with the pre-Covid days. We are allowed to reserve only 50 per cent of our total tables. There are days when even half of those remain vacant,” said the owner of a prominent lounge bar. October to January 1 are the major revenue generating months because of the festive season. But this year the hope of making a profit weighs heavy against the need for survival.

05 November, 2020