Lockdown hits liquor business in Karnataka

Liquor business was hit across Karnataka as wine stores were allowed to do business only for four hours a day. Reports said the sale of beer was particularly hit during the lockdown causing revenues to dive in the month of May.

Bengaluru:Karnataka's excise revenues dropped to an unprecedented low due to a sharp drop in liquor sales in May, reports said. The state has allowed only four hours of liquor sales in a day during the Covid-19 lockdown.

Excise revenue in May

Karnataka received Rs 1,388.16 crores of revenue from liquor in May, which is a drastic drop compared to April's revenue of Rs 3593.62 crores.

There were no beer buyers during the lockdown and beer sales slumped to record lows.

Only 6.88 lakhs of beer boxes and 39.50 lakh boxes of liquor were sold in May. Whereas a total of 32.60 lakh boxes of beer and 95.49 lakh boxes of liquor in April.

Karnataka

What caused the decline in liquor sales during the lockdown period

1. During the lockdown period, liquor shops are allowed to sell liquor only between 6 am to 10 am. This short duration is the reason for the low volume of sales.
2. People are not buying and storing beer at home.
3. Liquor is not served in bars and restaurants due to Covid-19 restrictions.
4. The Covid-19 lockdown has also stopped parties and social gatherings.