North India is guzzling beer like never before. The northern states of Punjab and Haryana registered over 550% and 238% growth respectively in the first quarter of 2006-07; in the south, United Breweries boss Vijay Mallya's backyard, Karnataka, and Orissa in the east experienced a negative growth of 4% and 18% respectively. The Delhi market grew by 32%, reports Financial Express, quoting figures released by the All India Brewers Association (AIBA).

During the quarter, nearly five million cases of beer were sold in Punjab and Haryana, against 600,000 cases in Q1 of 2005-06. Overall, the 105 million cases-a-year Indian beer market is set to register a 15% growth in 2006-07 to cross 120 million cases, thanks to the phenomenal growth in the two states.

Global beer sales are growing at 4-5%. China, the world's largest beer market, is growing at a pace similar to India's - 15%. The Chinese market of 200 million hectolitres, though, is 25 times the Indian market of eight million hectolitres. "Both Punjab and Haryana have moved to a retail-friendly beer policy as opposed to the old auction system. This has led to a sharp dip in retail prices - as much as Rs 15-20 per bottle," AIBA Director Sundeep Kumar told Financial Express.

Sales in Karnataka and Orissa are believed to have dipped because of new taxes.

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