Alcobev firms want Telangana govt. to clear dues by Nov. 10 to avoid shortfall in supplies

Three representative bodies of alcoholic beverage companies have urged the Telangana government to clear outstanding dues to their members by November 10 for the firms to continue supply in December.

“The new liquor retail licences come into play in December, which is the peak festival season. The combination of stocking up by new licences and the festive season is expected to increase the demand by retailers to 1.75 times the monthly average,” the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) said in a release on Monday.

Most companies, however, have pointed out that without immediate payment from the government, they would not have money to meet the demand, the three bodies said, adding their members account for nearly 90% of the alcoholic beverages sold in the State.

“The crisis can only be avoided if the State clears outstanding dues by November 10 from the ₹3,000-plus crore it has received from the [new liquor retail shop licence] application money. If [payments are not made], then it is inevitable the industry may not be able to supply as per the demand in December,” they said.

Stating that the alcobev sector in Telangana continues to reel under financial crisis due the worsening payment situation by the State government, the bodies said while sales of alcoholic beverages and revenue collections shot up in October 2025, riding on the festive demand, payment to suppliers fell by almost 50% in the month compared to what was released over the preceding few months. The payment received in July was ₹697.82 crore, August ₹614.62 crore, September ₹1,010.94 crore while in October it stood at ₹484.58 crore.

In October, heads of the associations had met senior government officials, including Deputy CM and Excise Minister, several times and got assurances that the State would commence releasing payments and clear old outstanding, especially for the May-August 2024 period on priority.

However, there has been hardly any progress in settlement of the dues. The three bodies said the ₹484.58 crore released till October 15 included ₹350 crore for May 1-15, 2024. “There has been no payment released since then... as a result total overdue outstandings stands at ₹3,366.21 crore, including ₹1,959.72 crore pending for the May-Aug 2024 period.