Andhra’s Liquor Policy Slashes Sales in Karnataka’s Border Districts Hitting Excise Revenue

Bangalore Mail Staff Reporter

Bengaluru: Liquor outlets in Karnataka’s border districts are reporting a significant slump in sales, largely attributed to Andhra Pradesh’s newly introduced excise policy, which has made alcohol both cheaper and more accessible.

Data from the Excise Department shows that while Karnataka sold 705.53 lakh cases of liquor in 2023–24, the number inched up only slightly to 708.85 lakh cases this year — a marginal growth of just 0.47 per cent.

Officials and traders point to several reasons for this slowdown. The state government’s repeated hikes in excise duty over the past two years have raised retail prices, while a fall in agricultural income has curbed rural spending. But the most dramatic factor comes from across the border.

Since the Chandrababu Naidu-led government in Andhra Pradesh rolled out its new liquor policy, over 3,000 private outlets have opened, selling bottles for as little as ₹99. This has lured customers from districts such as Ballari, Chitradurga, Tumakuru, Kolar, and Chikkaballapura, where residents are now choosing to cross state lines for their purchases.

“Sales have dropped significantly in border regions. Many shop owners who once benefited from Andhra customers are now struggling,” said N. Manjunath, Deputy Commissioner of the Excise Department in Ballari.

Kolar Excise Deputy Commissioner Sayeeda Azmat Afreen noted a 10% decline in sales in her district since Andhra’s policy came into effect in October 2024. Key areas hit include Mulbagal, Bangarapet–KGF, and Srinivaspura.

Retailers say the influx of cheaper, better-quality liquor from Andhra has even led to illicit cross-border movement of alcohol, further denting local sales.

The Karnataka government is reviewing the situation, as falling liquor sales in border districts threaten a critical source of state revenue.