Karnataka government asks beer manufacturers to stop operating third shift

BENGALURU: The Karnataka government has asked top beer makers including Heineken-controlled United Breweries and Belgium-headquartered AB InBev to impose third shift operations (10 pm to 6 am) at their breweries, citing shortage of full-time excise officers and staff. Told to stop.

The Excise Department has withdrawn permission to operate third shift which was earlier given to four breweries in Mysuru, the home turf of Chief Minister Siddaramaiah.

According to the excise department’s letter dated December 6, a copy of which is with DH, third shift operations at United Breweries, AB InBev, Carlsberg and B9 Beverages (Bira) will have to be stopped. The letter cited shortage of excise staff in the entire Mysuru district.

“We sincerely urge the state policy makers to reconsider the decision to cancel the operation of the third shift. “This decision will significantly impact the state’s thriving beer industry, jeopardizing employment and leading to beer shortages during Christmas, New Year and beyond, leading to the peak of the beer season,” an official of a top beer company said. will be on.”

“This will potentially drive retailers and consumers towards stronger alcoholic beverages,” the official said.

This is being seen as a move by the government to increase sales of Indian manufactured liquor (IML) like rum and whiskey, which brings in more revenue than beer.

The excise duty revenue target in the current financial year is Rs 36,000 crore. Between April and November, the government raised Rs 22,157.25 crore. Most of this at Rs 17,864.48 crore is from IML, while Beer accounts for Rs 3,515.76 crore.

In the last 2022-23 financial year, the government earned Rs 29,920.37 crore as excise duty, which included Rs 24,663 crore from IML and Rs 4,460 crore from beer.

Karnataka is considered one of the top beer markets in India. According to the latest industry estimates, the state consumes about 3.8 hectoliters of beer annually, which is about 11 percent of the national quantity.