The alcoholic beverages industry, a major revenue source for many state governments, has sounded an alarm in Telangana. Despite contributing nearly ₹38,000 crore annually to the state exchequer, the Telangana government reportedly owes the liquor industry about ₹3,000 crore in pending dues. Leading industry bodies have warned that unless payments are cleared by November 10, the state could face a severe liquor supply crisis during the upcoming Christmas and New Year celebrations — potentially spoiling the festive mood.
Industry’s Warning to the Government
The warning comes jointly from the Brewers Association of India (BAI), International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC).
These associations have urged the Telangana government to immediately release pending payments to liquor suppliers, warning that non-payment will disrupt supply during the peak festive period when demand rises to 1.75 times the normal monthly average. The industry also highlighted that the crisis could worsen with new liquor shops set to open next month.
“The government must act swiftly,” the associations stated. “Despite robust revenue collections, payments to suppliers have dropped by nearly 50% compared to the previous four-month average.”
Is the Government Short on Funds?
Industry representatives have questioned why payments are delayed despite the government collecting around ₹3,000 crore in license fees through the issuance of new retail liquor licenses in October. They argue that these funds should be used to clear overdue payments to manufacturers and distributors.
Outstanding Dues Breakdown:
- July: ₹697 crore
- August: ₹614 crore
- September: ₹1,010 crore
- October: ₹484 crore
Total Outstanding: ₹2,805 crore
A Vital Contributor to Telangana’s Economy
The Alcobev sector contributes more than ₹38,000 crore annually to the Telangana treasury and plays a crucial role in sustaining employment, retail trade, and the hospitality ecosystem. The industry bodies emphasized that continued government inaction could disrupt the entire supply chain, affecting retailers and consumers alike during the most profitable season of the year.
“If payments are not settled immediately, festival parties across Telangana may go dry,” warned a senior industry representative.
— SD Business Desk | Alcobev Industry Report
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