Karnataka witnessed a significant surge in liquor sales during the New Year celebrations, raking in substantial revenue for the state's excise department. In the last week of December, the state reported liquor sales worth ₹1,669 crore, which is an 8.94% increase over the same period in 2024. This boom was primarily driven by increased demand for both Indian Made Liquor (IML) and beer during the festive season.

Festive Demand and Increased Sales

Official data from the Excise Department shows a substantial increase in both volume and revenue during the three-day festive period between December 29 and 31, 2025. The state sold 9.84 lakh boxes of IML, marking an increase of 1.59 lakh boxes compared to the same period in 2024, when 8.25 lakh boxes were sold. Beer sales also witnessed a notable jump, with 6.64 lakh boxes sold compared to 5.03 lakh boxes in the previous year. The Excise Department earned ₹587.51 crore from IML and beer sales during this period, ₹166.74 crore more than the ₹420.77 crore earned during the same period in 2024.

MSIL (Mysore Sales International Limited) retail outlets also reported almost double the sales of liquor on New Year's Eve, with sales worth ₹18.11 crore, including ₹3.04 crore in the Mysuru region. This is a significant increase compared to a normal day, where sales average around ₹9.5-10 crore.

Factors Driving the Boom

Several factors contributed to this liquor boom in Karnataka:

• Festive demand: The New Year celebrations typically see a surge in liquor consumption as people celebrate and socialize.
• Increased consumer spending: Higher disposable incomes and a greater willingness to spend during the festive season also contributed to the increased sales.
• Rate rationalization: The government has set an excise revenue collection target at ₹40,000 crore for the 2025-2026 financial year and is auctioning liquor licenses for retail and bars, expecting to generate ₹600 crore and ₹1,000 crore.

Revenue and targets

The rise in sales directly reflected in government revenue. The Excise Department earned ₹587.51 crore from IML and beer sales during the 2025 year-end period. Last year, revenue from the same period was ₹420.77 crore. This means the state recorded an additional revenue of ₹166.74 crore this year compared to 2024.

Contrasting Trends and Concerns

It's worth noting that while the New Year period saw a surge in sales, overall liquor sales in Karnataka have been facing challenges. Between April and December 2025, beer sales declined by 16.40%, and IML sales also saw a marginal decrease of 0.98%. Some attribute this to rising prices due to increased excise duties, leading consumers to opt for cheaper alternatives or reduce consumption. There are also concerns about the rise in drug abuse and shifting consumer preferences towards healthier options.

Conclusion

The New Year liquor boom in Karnataka highlights the enduring popularity of alcohol during festive occasions. While the state's excise department is enjoying the immediate revenue boost, it remains to be seen whether this trend will continue throughout the year, especially considering the existing challenges and changing consumer behavior. The government will need to carefully balance revenue generation with public health concerns and affordability for consumers.