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Indian Made Liquor remained the biggest contributor in value terms, with around 22.59 lakh carton boxes sold during the period.
By the afternoon of December 31 alone, the Karnataka State Beverages Corporation Limited recorded liquor sales worth Rs 308 crore. Image: Canva
As the calendar turned from 2025 to 2026, Karnataka also marked a high point in liquor sales, with the New Year period delivering the strongest figures the state has seen in 3 years. Data released by the Karnataka Excise Department shows a sharp rise in both sales value and government revenue, underlining how crucial the festive season has become for the state’s excise kitty.
Between December 23 and December 31, liquor sales across Karnataka surged, driven by celebrations, parties, and a long holiday stretch that kept demand consistently high.
Revenue Jumps Despite Mixed Consumption Trends
During the final week of December, the total value of liquor sold in the state stood at Rs 1,668.99 crore, covering Indian Made Liquor and beer. From this, the state government realised excise revenue of Rs 1,319.11 crore. Compared to the same period in 2024, this represented a growth of 10.19 percent in revenue, while overall sales value rose by 8.94 percent year on year.
What stands out is that the revenue growth came even though consumption patterns were uneven across categories. Officials point out that pricing changes played a major role in boosting collections.
Indian Made Liquor and Beer Tell Different Stories
Indian Made Liquor remained the biggest contributor in value terms, with around 22.59 lakh carton boxes sold during the period. However, the actual volume of IML sold declined by about 3.17 percent compared to last year. Despite fewer cartons moving off shelves, higher prices ensured that revenue from this segment continued to climb.
Beer, on the other hand, showed a modest recovery. Nearly 15 lakh carton boxes were sold, registering a 1.5 percent increase in volume. Excise officials note that beer sales earlier in the year were hit by unseasonal rain and flooding in several parts of the state, making the New Year uptick particularly significant.
December 31 Delivers a Single-Day High
New Year’s Eve proved to be the biggest driver of sales. By the afternoon of December 31 alone, the Karnataka State Beverages Corporation Limited recorded liquor sales worth Rs 308 crore. This comfortably crossed the department’s internal target of Rs 250 crore for the day, highlighting the scale of last-minute festive buying.
Officials say crowds began building at retail outlets from early morning, with steady demand continuing through the day despite increased enforcement and checks.
Bengaluru Leads, But Districts Step Up
As expected, Bengaluru emerged as the single largest contributor, accounting for nearly 40 percent of Karnataka’s total liquor revenue during the New Year period. On December 31 alone, Bengaluru Urban district recorded sales worth Rs 1.82 crore through state-run outlets.
At the same time, smaller districts also reported striking numbers. In Raichur, one liquor outlet located near the railway station sold alcohol worth Rs 11.66 lakh in a single day, surprising even excise officials and underscoring how widespread the festive surge was beyond the capital.
Why Revenue Rose Even as Volumes Shifted
Excise officials attribute the strong revenue performance largely to the recent revision of excise duty slabs. Higher duties pushed up retail prices across several liquor categories, meaning that even stable or lower volumes translated into higher collections for the state.
The New Year performance is also important in the context of the state’s broader fiscal 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 critical milestones.
Enforcement, Policing, and Crowd Control
The surge in sales was accompanied by tight enforcement. In the days leading up to New Year, excise officials registered 1,294 cases across Karnataka for violations related to illegal sale and transport of liquor. Raids resulted in the seizure of illicit alcohol worth Rs 2.28 crore.
In Bengaluru, especially on MG Road and Brigade Road, where crowds crossed 1 lakh people, more than 2,000 police personnel were deployed to manage traffic, prevent public nuisance, and ensure safety amid widespread celebrations.
A Clear Signal for the State Exchequer
Taken together, the numbers from the 2025–2026 New Year period underline how central liquor sales have become to Karnataka’s revenue planning. Even with changing drinking patterns, pricing policy and festive demand ensured that the state rang in the New Year with record-breaking excise collections.
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January 02, 2026, 12:18 IST
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