'No shortage of beer in Karnataka'

Karnataka excise minister MP Renukacharya on Tuesday said there was no shortage in production and supply of beer in the state.

A few days ago, there was a temporary disruption in the production and supply of beer on account of a change in labels to be pasted on beer bottles following the imposition of an additional excise of 7.5 per cent. However, officials of the department said hoarding of bottles by shopkeepers to sell at higher prices after April 1, when the new rates took effect, was another major reason for the temporary shortage in the supply of beer last month.

 

In the 2012-13 Budget, the government increased the duty by 7.5 per cent on Indian made liquor (IML) as well as on beer and low alcoholic beverages.

Renukacharya said the department had set a target to collect revenues of Rs 10,775 crore in 2012-13. The department's revenue was Rs 9,731.43 crore in 2011-12, an increase of 16.61 per cent over the previous fiscal.

In 2011-12, the state sold 49.46 million boxes of IML and 21.2 million beer boxes. The sale of IML and beer was highest in March and stood around 5.45 million boxes and 2.74 million boxes respectively, he said.