Liquor firms in Telangana buckle under unpaid state bills

A deepening payment paralysis in Telangana’s liquor industry is beginning to choke manufacturing units, strain supplies, employment, and the broader investment landscape, industry bodies have warned, as unpaid dues accumulate to levels they describe as “unprecedented” and “severe”.

- ANEEKA CHATTERJEE

India’s alcobev industry groups — the Confederation of Indian Alcoholic Beverage Companies (CIABC), Brewers Association of India (BAI), and International Spirits and Wines Association of India — have jointly raised the alarm.

In a statement, the bodies observed that although alcobev sales and state revenue collections surged in October 2025 on the back of festival demand, payments to suppliers dropped sharply. The state released nearly 50 per cent less to manufacturers in October compared to the average disbursement over the previous four months.

Despite repeated meetings with senior officials including the deputy chief minister and the excise minister in October 2025— and assurances of clearing long-pending dues from May-August 2024 — payments barely moved. After releasing about ₹484.58 crore by mid-October, the state stopped disbursements, pushing total overdue outstanding to roughly ₹3,800 crore (including nearly ₹1,900 crore of new outstanding in 2025-26), breaching the 45-day contractual payment cycle.