The consumption of beer has witnessed a significant decline in Maharashtra in recent years. This trend reflects a complex interplay of social and economic factors that have collectively contributed to a decrease in beer consumption across the state. Whereas consumption of Indian-made foreign liquor (IMFL) has increased over the last nine years. But what’s the reason behind it?
Maharashtra Is Not Drinking Beer
According to a Times Of India article, while IMFL (Indian Made Foreign Liquor) sales in the state increased from around 1,800 lakh litres to 2,700-odd lakh litres — an almost 50% increase — between 2017-18 and 2022-23, beer sales increased only a little during the same period, from 2,900 to 3,150-odd lakh litres. In terms of volume, Maharashtra now consumes more IMFL than beer.
The cause may not be difficult to find: beer in Maharashtra is the most expensive in India. In Maharashtra, IMFL duty has increased by 9% since 2014, while beer duty has increased by 34%. In terms of the proportion of pure alcohol included in the product, the current taxes on beer in the state are more than double that on hard spirits. In fact, it is the highest in the country.
These policies have made it more expensive and less accessible for individuals to purchase and consume beer.
Here’s Why
Over the last five years, excise revenue from the IMFL category has more than doubled, while beer’s contribution has remained stable, if not declined. Between 2015 and 2019, Maharashtra was the only state in the country experiencing a decline in beer industry growth while other states witnessed growth in volume and revenues. Moreover, while the liquor sector recovered quickly after the pandemic, the beer industry took three years to recover to pre-pandemic levels.
A significant disparity emerges when comparing beer sales volume in Maharashtra to other large states. The consumption of beer in Maharashtra has experienced a notable decline due to a combination of factors.
As these factors continue to shape the beverage landscape in Maharashtra, it will be interesting to see how the beer industry adapts and whether this decline in consumption remains a long-term trend.
Cover image credits: Canva
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