India, Aug. 16 -- Liquor sales dropped significantly in July compared to the first quarter of the 2025-26 financial year on the back of a 50% hike in excise duty in the last week of June.

The hike pushed up prices of Indian made foreign liquor (IMFL) and country liquor by nearly 60% and 20% respectively, while sales of IMFL and country liquor in July dropped by 10.9% and 9.70% respectively compared to average monthly sales in the April to June quarter. Beer sales, generally low during the monsoon months, too registered a 30% dip in July.

Officials from the excise department, however, said the dip in sales would not affect revenues as the quantum of increase in excise duty was much more than the hike in retail prices.

"Our additional re...