Karnataka govt asks beer makers to halt third shift ops

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

The excise department has withdrawn third shift operation permission that was earlier given to four breweries in Mysuru, Chief Minister Siddaramaiah's native. 

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

Third shift operations in these breweries were approved as recently as September and October.

“We sincerely urge policymakers in the state to reconsider the decision of canceling the third shift operation. This decision will significantly impact the state's thriving beer industry, jeopardise employment and cause a shortage of beer around Christmas, New Year and beyond, which makes for the peak beer season," an official from a top beer company said.

"This will also potentially steer retailers and consumers towards stronger alcoholic beverages," the official added. 

This is being seen as the government's manoeuvre to shore up sales of Indian-made Liquor (IML), such as rum and whisky, which brings in more revenue compared with beer.

In the current fiscal, the excise revenue target is Rs 36,000 crore. Between April and November, the government mopped up Rs 22,157.25 crore. Much of this is from IML at Rs 17,864.48 crore against beer's Rs 3,515.76 crore. 

In the previous 2022-23 fiscal, the government earned Rs 29,920.37 crore as excise revenue, which included Rs 24,663 crore from IML and Rs 4,460 crore from beer.

Karnataka is considered among India's top beer markets. According to the latest industry estimates, the state consumers around 3.8 hectolitres of beer annually, which is roughly 11 per cent of the national volume.