United Breweries, Radico Khaitan shares rise up to 3% as Karnataka govt releases draft plan for new liquor policy

Shares of major liquor companies

weries and itan jumped up to 3% in early trading on Monday after the Karnataka government released a draft notification outlining a significant overhaul of its liquor policy. The state plans to introduce an Alcohol-in-Beverage (AIB) based excise duty structure that taxes alcohol based on its actual strength rather than the current volume or slab-based system. Karnataka is set to become the first state in India to adopt this globally recognised model, effective from April 2026. Under the proposed AIB system, excise duty will be levied on the pure alcohol content per litre of the beverage. This move is expected to bring greater transparency, ease compliance, and help maximise state excise revenue while promoting moderation in consumption. The draft also includes ending the existing price control mechanism and rationalising other fees, which analysts believe could support premiumisation in the industry.