Liquor sales dip 29% in Karnataka
Legitimate liquor sales in election-bound Karnataka have hit a dry patch during what is normally a bountiful time of the year for the trade.
BANGALORE: Legitimate liquor sales in election-bound Karnataka have hit a dry patch during what is normally a bountiful time of the year for the trade. The strict rules that govern the run-up to polls and higher prices brought on by higher taxes are among the factors that have resulted in sales by volume in April nosediving 29% compared to the average of recent months.
This is unusual for the state, where in the past the weeks prior to the polls would bring buoyancy to the spirits industry as political parties lifted stock in bulk. Anecdotal observations by industry veterans suggest there was a time when political outfits lifted stock directly from factories, and more recently ��� as regulations got tougher ��� placed bulk orders with the retail trade.
In Karnataka the infamous liquor lobby wielded significant clout during elections. That may have changed with the local distilleries ��� which once thrived with tax-evaded ���seconds���, ��� effectively tamed during the last five years, as the management of the liquor trade passed into the hands of the Karnataka State Beverages Corporation.
While a change in the duty regime from April 1 dampened market sentiment, the excise department has been spirited in implementing Election Commission diktats.
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