Alcohol sale in Karnataka falls after government hikes prices

On the fourth day after the sale of alcohol resumed in Karnataka, the state witnessed a pointy decline in gross sales after the federal government hiked retail costs of liquor by 17%, official mentioned.

According to officers of Karnataka State Beverages Corporation Ltd, alcohol price Rs 165 crore have been bought on Thursday in comparison with Rs 232 crore of sale on Wednesday earlier than the value hike.

On Thursday the state bought 27.56 lakh litres of OIndian Made Foreign Liquor (IMFL) priced at Rs 152 crore and 5.93 lakh liters of beer valued at Rs 13 crore.

The sale of alcohol had stopped from the night time of March 24 because the lockdown to verify the unfold of coronavirus took impact. After greater than 40 days of lockdown, the Karnataka authorities had lastly agreed to renew gross sales from May Four however had mentioned that solely about 4,500 standalone liquor shops may promote whereas bars, eating places and shops situated in procuring complexes and malls proceed to be shut to make sure ample social distancing.

Immediately after re-opening on Monday it had bought alcohol price Rs 45 crore. On Tuesday the gross sales rose to Rs 197 crore and on Wednesday it touched Rs 232 crore.

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Chief minister B S Yediyurappa whereas saying a Rs 1,610 crore Covid-19 aid package deal on Wednesday had mentioned that it might be primarily funded by a hike of 11% in excise tax. This was on high of the 6% hike which was introduced within the finances offered in March indicating a cumulative 17% hike in retail costs.

A KSBCL official chatting with HT nonetheless claimed that the decline in liquor gross sales was not a shock and was anticipated. “There was a huge pent-up demand due to closure of all sales for nearly 42 days and thus in the initial days there would be a spurt as people try to stock up or replenish diminished stock. Before the closure too, Karnataka on an average did about Rs 55-60 crore sales per day and despite the hike in prices we expect we will be able to meet our annual target.”

In 2019-20 the state had mopped up Rs 19,701 crore of income from the sale of liquor (until February because the finances was offered on March 5). The income goal from sale of alcohol this 12 months is Rs 22,700 crore.