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On the fourth day after the sale of alcohol resumed in Karnataka, the state witnessed a sharp decline in sales after the government increased retail liquor prices by 17%, the official said.
According to Karnataka State Beverages Corporation Ltd officials, alcohol was sold for Rs 165 crore on Thursday compared to Rs 232 crore on Wednesday before the price rise.
On Thursday the state sold 27.56 lakh liters of OIndian Made Foreign Liquor (IMFL) at a price of Rs 152 crore and 5.93 lakh liters of beer valued at Rs 13 crore.
The sale of alcohol had stopped since the night of March 24 when the blockade to control the spread of the coronavirus came into effect. After more than 40 days of closure, the Karnataka government finally agreed to resume sales starting May 4, but said that only around 4,500 independent liquor stores could sell, while the bars, restaurants and shops located in shopping complexes and shopping centers are still closed to guarantee adequate social distance.
Immediately after reopening on Monday, it had sold alcohol worth Rs 45 crore. On Tuesday sales rose to Rs 197 million rupees and on Wednesday it touched Rs 232 million rupees.
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Prime Minister B S Yediyurappa, announcing on Wednesday a Rs 19 million Covid relief package, said it would be funded primarily by an 11% increase in excise duties. This was in addition to the 6% increase announced in the budget presented in March, indicating a cumulative 17% increase in retail prices.
However, a KSBCL official speaking to HT stated that the decline in liquor sales was not a surprise and was expected. “There was a lot of pent-up demand due to closing all sales for almost 42 days and therefore in the first few days there would be a surge as people try to stock up or replenish declining stocks. Before closing as well, Karnataka averaged sales of Rs 55-60 million per day, and despite the increase in prices, we hope that we will be able to meet our annual target. ”
In 2019-20, the state had cut Rs 19,701 crore from revenue from the sale of liquor (until February, as the budget was presented on March 5). The target of income from the sale of alcohol this year is Rs 22,700 crore.
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