Karnataka Opens Doors To Distillery Based Alcohol Tourism

Alcohol-based tourism is a growing niche in India, with a few reputed wineries and distilleries offering vineyard tours and tasting sessions. This sector is rapidly growing, and now the Karnataka government has formally introduced the concept of alcohol tourism in the state. While the Karnataka government strict age verification for bars and pubs is still in the headlines, the government has announced that it allow licensed distilleries to establish dedicated factory outlets for tours. Let’s take a look at more details of the new tourism model introduced by Karnataka.

Distillery Based Alcohol Tourism In Karnataka

The Karnataka government has introduced the concept of distillery based alcohol tourism. It has notified rules that allow licensed distilleries to establish dedicated factory outlets where visitors can taste and purchase liquor produced on-site.

The Karnataka Excise (Distillery and Warehouse) (Second Amendment) Rules, 2026 came into effect upon their publication in the official gazette on July 28. The excise rules create a new license category for distillery factory outlets. The notification also follows the government’s review of objections and suggestions received after the draft rules were issued in May 2026.

Also Read: Karnataka Raises Liquor Permit Fees For House Parties, Cuts Beer And Scotch Prices

Provisions Under The Alcohol Based Tourism

These are the provisions under the amended rules:

• Licensed distilleries can set up factory outlets within their premises after obtaining necessary approval from the Excise Commissioner.
• Outlet must, however, be physically separated from the manufacturing area.
• The outlet must be located away from the main entrance or exit preferably.
• The facility is required to provide seating arrangements, a refreshment room, and separate toilets with running water for men and women.
• Distilleries can offer tasting samples of liquor brands on-site, with each tasting sample limited to 30 ml.
• They can sell the same products in sealed bottles or other sealed containers of at least 375 ml, subject to the maximum possession limits prescribed under the Karnataka Excise Rules.

The government has also clarified that these privileges are available only to visitors touring the distillery. Wholesale sales and retail sales to individuals who are not part of the distillery tour are strictly prohibited.

Rules And Fees For Distillery Tours

The rules have stipulated that all liquor intended for tasting or retail sale through the factory outlet must be procured exclusively from the Karnataka State Beverages Corporation Ltd in accordance with excise regulations.

Products must be sold at the MRP, and bills must be issued for every purchase.

The annual license fee for operating a distillery factory outlet has been fixed at INR 4 lakh. There will also be an additional license fee equivalent to 15 per cent of the prescribed amount. The license will remain valid for five excise years, including the year of grant, subject to payment of the applicable annual fees.

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Summing Up

Karnataka has opened doors to distillery based alcohol tourism, signaling a step ahead for alcohol tourism in the state. The government has issued a set of rules and provisions for distilleries interested in distillery based alcohol tourism. By introducing a clear regulatory framework for distillery tours, tasting experiences, and factory outlets, the government is creating opportunities for visitors to explore the craftsmanship behind premium spirits while giving local distilleries a new avenue to engage directly with consumers.