Liquor prices set to drop in Karnataka; likely to rise by 15-25% in Telangana

Despite both Telangana and Karnataka being governed by the Congress party, their approaches to liquor pricing are markedly different. The Telangana Congress government is reportedly planning to raise liquor prices to boost revenue, while the Karnataka government is preparing to reduce prices on premium liquor brands starting July 1.

In Karnataka, the government aims to cut prices of premium liquor brands by up to 10 percent, with reductions of 12 to 15 percent for premium foreign brands. This move is intended to increase excise revenue and curb liquor smuggling into the state. 

Conversely, the Telangana government is considering a price hike of 15 to 25 percent across all liquor brands. This decision is part of a strategy to generate an additional income of Rs. 3,000 to 3,500 crores annually through increased alcohol revenue. A recent meeting of the Cabinet Sub-Committee on Revenue Mobilization included discussions on potential revenue sources, with liquor price hikes being a key topic. However, the exact timing and implementation details of the price increase remain unclear.