Karnataka's new excise policy: Premium whiskey, beer to cost less as local liquor gets dearer

With the Karnataka government's new excise policy coming into effect, beer and whiskey lovers will have more to cheer as prices of some of the premium brands will come down.

With effect from May 11, the State government did away with the decades-old bulk litre-based system to one pegged on the percentage of alcohol in beverages.

For the records, Karnataka becomes the first State in India to adopt this model.

The change will have its cascading effect as cheap liquor will become dearer while premium brands will cost less, with prices being slashed in the 20 to 25 per cent range.

With price being revised based on the alcohol content, a 650 ml mild beer brand which has 5 per cent alcohol and priced at Rs 185 will now cost less by Rs 75.

Similarly, premium whiskeys are also expected to see a 20 per cent reduction in prices. For example, a Scotch whiskey which has 43 per cent alcohol content and costs Rs 5,190 (750 ml) will be available for Rs 4,100 now.

However, on the flip side, the price of Indian Made Liquor (IML) will go up. Cheaper drinks like the 180 ml Tetra Pak of whiskey, rum, brandy, gin and vodka which are popular and in huge demand, will see an increase of price in the 20-30 per cent range.

Local liquor manufacturers have already raised a banner of revolt, saying that the new liquor police is aimed at favouring only the multi-national companies at the cost of IML as they feel the price change will hit the lower to middle income consumers badly.

(With DHNS inputs)