Liquor suppliers await clearance as dues hit Rs 3,725 Cr

Metro India News | Hyderabad 

A growing controversy has erupted in Telangana over alleged pending payments to liquor manufacturing companies, with industry sources claiming that the state government owes Rs. 3,725.73 crore for supplies made over the past four months, even as the liquor trade operates under a strict cash-and-carry system from top to bottom.

According to the established system, the liquor business in the state runs entirely on advance payments. Retail outlets such as wine shops, bars, and restaurants purchase stocks from the Telangana State Beverages Corporation Limited (TSBCL) only after making upfront payments. Consumers too pay immediately at the point of purchase. In turn, the Beverages Corporation collects money in advance from retailers before releasing supplies, maintaining a cash-and-carry cycle throughout the retail chain.

However, despite this structure, private liquor manufacturing companies claim they have not received payments from the government for over four months. Industry representatives say that while supplies continued based on official orders, payments were cleared only until the first week of December 2025. Since then, no further payments have been released.

By the first week of April 2026, outstanding dues reportedly climbed to Rs. 3,725.73 crore, sparking concern among suppliers. Manufacturers argue that the continuous supply of liquor to the state has been maintained, but the corresponding payments have been delayed without explanation, putting severe financial pressure on companies.

Leading industry bodies, including the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC), have reportedly written to the government seeking immediate clearance of all pending dues. They have warned that if delays continue, total arrears could cross Rs. 5,000 crore in the coming months due to ongoing supplies and accumulated bills.

The situation has also triggered questions over how liquor revenue generated in a cash-based system is being managed. Industry stakeholders argue that while the state continues to earn significant income through excise duties and margins at multiple levels, funds meant for supplier payments appear to be delayed or diverted toward other government expenditures.

Companies have urged the government to clear all outstanding bills immediately, stating that prolonged delays are increasing financial strain due to mounting interest costs. They emphasized that while the government has the right to use revenue for public needs, supplier payments should not be compromised under any circumstances.