The Karnataka government has reversed its earlier order, which had instructed beer manufacturers in the state to halt third-shift operations. This change comes in response to industry concerns about the shutdown leading to a shortage and diverting sales to other alcoholic beverages.
Continue Exploring: Karnataka govt orders beer breweries to halt third-shift operations
Last week, the state excise department issued a notice, attributing the shortage of excise officers and staff as the reason for discontinuing duty during the third shift. In the recent reversal order, the department acknowledged concerns raised by companies, emphasizing that the cancellation of shifts would lead to financial distress, create a beer shortage during Christmas and New Year celebrations, and incur losses for the government.
The anticipated rise in beer demand during the approaching summer season is also under consideration.
“Considering the request of beer companies and keeping in mind the interest of the government, the issued order is being withdrawn with immediate effect,” the excise department notice read.
Notices were issued last week to companies including United Breweries, Anheuser Busch InBev India (ABInBev), Carlsberg India, and B9 Beverages.
“We express our sincere appreciation to the state officials and policymakers for their reconsideration of the decision. This step will ensure a consistent supply of beer during the festive season. We thank the authorities for their quick resolution of this matter,” a spokesperson at United Breweries Limited said, commenting on the revocation
As of 2023, Karnataka stands as one of the leading beer markets in the country, contributing approximately 3.8 million hectolitres, which accounts for roughly 13 percent of India’s total beer volume. The state hosts major beer brands like United Breweries, ABInBev, Bira91, and various other companies. In the broader context, India’s beer industry boasts an overall volume of around 33 million hectolitres.
