Karnataka: Beer prices likely to go up by up to Rs 15?
Bengaluru: The Karnataka government has issued a draft notification proposing a 10% hike in Additional Excise Duty (AED) on beer. Public have been given seven days to file objections.
With this move, beer prices are expected to rise by Rs 10 to Rs 15 per bottle.
The Federation of Wine Merchants Association of Karnataka has opposed the hike and urged the government to adopt scientific standards while fixing liquor prices.
At present, the AED on beer in Karnataka is 195% of the production cost. The new proposal seeks to raise it to 205%, officials from the excise department said. As a result, prices of premium and regular beer brands are expected to increase by Rs 10 to Rs 15 per bottle.
Third hike in two years
Mid-range and budget local beer brands may see a price rise of up to Rs 5, varying from brand to brand. In July 2023, the Congress government increased the AED from 175% to 185%. Again in January 2025, it was raised from 185% to 195%. Now, the government is proposing the third hike.
Earlier hikes had pushed beer prices up by Rs 10 to Rs 45, depending on the brand.
Merchants raise objections
Federation president S Guruswamy from Mysuru said the price hike could hit sales, and the association will file objections.
General secretary B Govindaraj Hegde has appealed to the excise department to hold meetings with retail liquor traders before fixing prices and ensure that rates remain affordable for customers.
