Kerala craft beer and microbrewery rules, as of October 2026
Kerala has talked about microbreweries for two decades and still has no route to brew on a bar's premises. Here is what a founder can do today, how beer reaches a Kerala bar and what to watch as the new government writes its policy.
The short answer
As of 8 October 2026 we found no microbrewery or brewpub licence in force in Kerala and no operating brewpub. The idea is old. The excise department first proposed microbreweries in 2005. In 2017 the state agreed in principle, according to The News Minute (7 September 2017). The 2022 liquor policy again envisaged them, Onmanorama reported on 1 April 2022, but no licence category followed that we could trace.
The government changed in May 2026. On 21 June 2026 the new excise minister said there is no new liquor policy in place and that one would come only after consultation. So the honest position for a founder is: not yet, with no date.
One oddity. The excise fee schedule lists an FL-13 licence for the possession and vending of pub beer for consumption on the premises, at ₹50,000. We found no rules or operating units that use it for on-site brewing. If anyone offers you a brewpub on that basis, ask for the rule in writing.
Bevco runs the supply chain
The Kerala State Beverages Corporation (Bevco) is the wholesaler for IMFL and beer in the state. Each year it invites tenders and signs rate contracts with suppliers for the coming financial year, as its purchase rules set out. Bars and beer parlours then buy from Bevco's FL-9 warehouses, paying before the goods are released. Beer brewed outside Kerala carries excise duty and an import fee on top of its purchase value.
For a craft brand that means one buyer, one annual tender and orders sized to a supplier's average monthly sales. A small brewery cannot sell a keg to a Kochi bar by itself. It has to be on Bevco's list first.
How beer is taxed
Most of the tax on beer in Kerala is sales tax under the Kerala General Sales Tax Act, collected at Bevco's first sale. The December 2022 amendment bill records beer at 112% and proposed raising it to 116%. The June 2026 budget created lower sales tax slabs of 120% and 175% for low-alcohol drinks, but excluded beer and wine. We found no 2026 change to the beer rate itself. Check the current schedule before you build a price.
How a hotel or restaurant pours beer today
No venue in Kerala brews its own beer, so every glass on tap comes through Bevco. The licences on the excise fee schedule are:
- FL-3: hotel, restaurant and bar licence, ₹35 lakh a year. Bar licences have gone to hotels with a three-star or higher rating.
- FL-11: beer and wine parlour, ₹4 lakh, for KTDC and ITDC outlets, three-star and higher hotels, heritage and resort hotels and classified restaurants.
The 2025 policy added a lounge licence for IT parks at ₹10 lakh a year, serving only official guests and visitors of IT companies, according to The Week. Supply to those lounges also runs through FL-9 holders. We found no published rule on draught beer kegs, so a bar planning taps should confirm with its excise office and the Bevco warehouse what packs are listed.
Brewing and contract brewing
Commercial brewing is licensed under the Kerala Brewery Rules, 1967: form B1 to brew beer at ₹4 lakh and form B1(A) to bottle it for sale at ₹2 lakh. The April 2025 policy talked of more production units for IMFL and beer. We found no published route for contract brewing. A brand without a plant would need a licensed Kerala brewery to make and supply the beer under its own licence and Bevco rate contract, or a brewery outside Kerala that tenders to Bevco and pays the import fee. Our contract brewing guide covers how those agreements work elsewhere.
What a Kerala founder can do now
If your plan is a brewpub, the realistic options are a brewpub in a neighbouring state, with a microbrewery licence where one exists, or a packaged brand that wins a Bevco rate contract. If your plan is a bar, the choice is FL-3 or FL-11 and a beer list built from Bevco's catalogue. Either way, watch for the new government's liquor policy and read its brewery section closely. Rates and fees here come from the sources linked above. Check the current notification with the excise department or a licensing adviser. This guide is a working summary, not legal advice.
Common questions
Can I open a microbrewery or brewpub in Kerala?
Not as of October 2026. Microbreweries have been proposed since 2005 and envisaged in the 2022 policy, but we found no licence category in force and no operating brewpub.
Who supplies beer to bars in Kerala?
Bevco, the Kerala State Beverages Corporation. Suppliers sign annual rate contracts with it and bars buy from its FL-9 warehouses.
Which licence lets a Kerala restaurant serve beer?
An FL-11 beer and wine parlour licence for qualifying hotels and classified restaurants, or an FL-3 bar licence for hotels of three stars and above.
Did the 2026 Kerala budget cut tax on beer?
No. The new low-alcohol sales tax slabs announced in June 2026 exclude beer and wine.
