NEWS
MAJOR INDUSTRY BODIES ISSUED JOINT ULTIMATUM TO TELANGANA STATE GOVERNMENT
By Staff Reporter
11-6-2026
Credit: Unsplash
Top Indian alcohol industry bodies have warned of imminent liquor supply disruptions across Telangana state, citing massive payment arrears owed by the state’s public liquor distribution body to licensed manufacturers and brewers.
In a joint ultimatum, the Confederation of Indian Alcoholic Beverage Companies, Brewers Association of India and International Spirits and Wines Association of India said that sustained unpaid dues have created a severe liquidity crunch threatening regular stock supplies.
The monopolistic Telangana State Beverages Corporation, the state’s sole authorised wholesale procurement agency, has delayed clearing legitimate supplier invoices for more than a year.
Industry data shows government disbursements to manufacturers have fallen by nearly 50 percent despite rising state liquor tax revenues over late 2025 and early 2026.
Long-overdue invoices dating back to May 2024 remain unresolved, with the total accumulated arrears hovering close to INR38 billion (USD 399 million), nearly half of which have remained unpaid for more than 12 months beyond the contracted settlement timeline.
The cash flow squeeze has hit mid-sized distilleries and beer producers hardest, limiting their ability to fund raw material sourcing, packaging and logistics operations required for consistent state-wide supply.
The industry consortium has set a 10 November 2026 deadline for full settlement of outstanding arrears, cautioning it will halt deliveries across Telangana if dues remain unresolved.
“These are verified, undisputed arrears,” Brewers Association of India director general Vinod Giri said, noting the delayed payments have severely strained operational margins across the regulated liquor value chain.
Stakeholders also criticised inconsistent settlement practices, including selective discounts on fresh invoices while legacy dues remain pending.
A supply halt risks retail stock shortages, price volatility and increased circulation of unregulated liquor ahead of India’s peak festive consumption season.
Telangana’s excise sector is a key state revenue source and supports hundreds of thousands of formal jobs across manufacturing, logistics and retail.
As of press time, the Telangana Excise Department has not issued an official response to the industry’s formal notice.
(the writer can be contacted at: info@thewinechronicle.com)
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