Changes in liquor prices based on alcohol content

Madikeri, May 13: A new rule of the state government and the excise department regarding the price of liquor is now coming into effect in the state of Karnataka. This change process has already started and will be finalised soon. At present, liquor sellers, traders and liquor lovers are facing some confusion. The common man is not aware of clear information regarding the price.

For the time being, the price of some brands of liquor will increase by 20 percent. Most of the cheaper liquor will be included in this list. The details of the current price change are that there is a possibility of a price reduction of 10 to 20 percent for many other brands under the current new rule.

The 20 percent increase in the price of liquor will bring some additional burden (kick) to liquor lovers.

What is the change..?

According to the information collected regarding the price of ‘Shakti’ liquor, the exact price has not been fixed yet. However, the price has increased since Tuesday. The price is yet to be finalized by the liquor manufacturing companies (factories).

What is the system..how was it..?

Any type of liquor is made in distilleries, breweries, wineries. This includes whiskey, rum, brandy and other liquors, beers. Earlier, there were a total of 16 levels (rates) related to hot drinks, but now it is coming down to 8 levels. For example, the price for Hadahane was 100 to 150, 200 to 250, ranging from cheaper to more expensive liquor.

According to the current change, the price will be fixed based on the amount of alcohol used by the liquor manufacturing companies for the respective type of liquor. Hot drinks use 42% alcohol. Now, liquor manufacturers can reduce this to 40% or continue as is. However, for a certain amount of alcohol, other taxes (including production cost, transportation cost) can be paid by the respective distilleries.

After giving full details (declared price, maximum retail price) to the Excise Department, they can sell it at a final price. In this, there will be a 5% retail profit for KSBCL and a 10% profit margin for bars. Earlier, there were fluctuations in this. Now, the price will be fixed as per the quantity of alcohol. This will be 20% more expensive in the case of low-priced liquor. Only in some expensive liquors, there is a possibility of a reduction of 10 to 20% in the quantity of alcohol.

Beer

Previously, there were three slots for beer. Below 5%, Alcohol Able 5%, Alcohol and Not Exceeding 8% Alcohol, now the price of beer will be fixed according to the exact amount of alcohol. For example, in the past, some beers were priced as 8% alcohol even though they had 6.5% alcohol.

A department official has informed that the exact amount of price should be implemented now. According to him, in the current rules, there is no loss for the government, nor for the consumers, as they have to pay the price according to the amount of alcohol. However, of course, most people in the state consume low-priced alcohol more often. The fact that the price of this alcohol is going to increase by 20% will really come as a ‘shock’ to the alcohol lovers. The common people say that only the government will get some income. The respective distilleries will have to show details online, and the price will be set accordingly.

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