Karnataka govt asks beer makers to stop operations in third-shift

Pointing to a shortage of excise officials and staff, the Karnataka government has asked top beer makers to stop third shift operations (10 pm to 6 am) at their breweries in Mysuru, according to a report by Deccan Herald (DH).

The excise department has withdrawn permission to operate a third shift in four breweries in Mysuru, Chief Minister Siddaramaiah's native. A letter citing a shortage of excise staff in the entire Mysuru district was sent to United Breweries, AB InBev, Carlsberg and B9 Beverages (Bira). Breweries had been permitted to operate third shifts as recently as September and October.

An official from a top beer company was quoted as saying by DH that the state government should reconsider the decision of cancelling the third shift operation as the decision will negatively affect Karnataka's beer industry, imperil employment, and lead to a shortage of beer around Christmas and New Year, which is the peak beer season.

The official added that this move could also push retailers and consumers towards stronger alcoholic beverages. In some quarters, the development is being seen as a part of the government's initiative to drive sales of Indian-made Liquor (IML), such as rum and whisky.

The excise revenue target is Rs 36,000 crore in the current fiscal. The government earned up to Rs 22,157.25 crore between April and November. Much of the revenue came from IML at Rs 17,864 crore against Rs 3,517 crore from beer.

The state government bagged Rs 29,920 crore as excise revenue, which included Rs 24,663 crore from IML and Rs 4,460 crore from beer.in the financial year 2022-23.

Karnataka is among India's biggest beer markets. The state consumes around 3.8 hectolitres of beer annually, which is roughly 11 per cent of the national volume.