Kerala's Onam Liquor Sales Surge Past ₹233 Crore in First Three Days
Kerala's state-run liquor retailer, the Kerala State Beverages Corporation (BEVCO), has reported a strong start to the 2026 Onam season, with sales of approximately ₹233 crore in the first three days (August 18–20). This marks an 11% increase from the roughly ₹210 crore recorded during the same period in 2025, according to data cited by Malayala Manorama and THE WEEK.
The figures align with separate data reported by The New Indian Express, which put total liquor sales in Kerala at ₹279.12 crore over the first three days of the season, compared with ₹250.96 crore in the corresponding period last year. That report also noted that sales crossed the ₹100-crore mark on August 22, with ₹102.28 crore sold through BEVCO outlets that day, while sales on August 21 and 23 stood at ₹87.86 crore and ₹88.98 crore, respectively.
BEVCO outlets across the state saw an intense rush as consumers stocked up for the festival, according to Malayala Manorama. The corporation, which holds a monopoly on liquor distribution and retail sale in Kerala, had made extensive arrangements to manage the heavy footfall.
Expected to Surpass Last Year's Season Total
Last year, BEVCO recorded liquor sales of ₹970.74 crore during the entire Onam season, and officials expect the ongoing season to surpass that figure, The New Indian Express reported. The festive period is a significant contributor to the corporation's annual collections, THE WEEK noted.
Losses and Revenue Context
Despite the festive boom, BEVCO reported a loss of ₹180 crore in 2025, according to THE WEEK. Excise Minister M Liju attributed the loss to a sharp increase in the gallonage fee from 5 paise to ₹10, which he said wiped out profits, while the corporation had to pay around ₹400 crore to the government.
For the fiscal year 2025-26, the state collected around ₹21,130 crore from liquor sales, of which ₹18,675 crore was tax, THE WEEK reported. That tax amounts to nearly 12% of the total revenue receipts of ₹1,52,351 crore for the year. Indian Made Foreign Liquor, the highest-revenue category, is taxed at a flat rate of 251%.
The new state government has introduced a tiered sales tax structure with lower slabs for low-alcohol alternatives, similar to Karnataka's system based on Alcohol-By-Volume, which means revenue from other categories is lower, THE WEEK added. Discussions on the state's liquor policy are expected to be completed within a week in September, after the Onam season.
Possible Link to Anti-Drug Campaign
Local media has connected the soaring sales to Operation Toofan, Kerala's statewide anti-narcotic campaign. A senior police official, speaking to an outlet, hinted that the effectiveness of the operation led those unable to access drugs to turn to alcohol, THE WEEK reported.
Meanwhile, the police and excise departments have intensified a special Onam drive against illicit liquor and drunk driving, which began on August 1. The excise department has also strengthened surveillance around toddy parlours, where the chances of adulteration are heightened during the festival. Illegal brewing is strictly prohibited under the Kerala Abkari Act.