Beverage associations urge Telangana government to clear pending dues of Rs 3,366 crore to liquor suppliers

New Delhi: Leading associations of the alcoholic beverages industry have urged the Telangana government to clear pending dues amounting to Rs 3,366 crore to liquor suppliers immediately.

ISWAI ( International Spirits and Wines Association of India), the Brewers Association of India (BAI) and Confederation of Indian Alcoholic Beverage Companies (CIABC) in a joint statement said that the Alcobev Sector in Telangana continues to reel under tremendous financial crisis due the worsening payment situation by the Telangana government vide supply of liquor and beer to the state owned wholesaling corporation.

"While the sales of alcoholic beverages and revenue collections shot up in October 2025 riding on festive demand, the payment to suppliers actually fell by almost 50 per cent in the month of October 25 compared to what has been released in the past 4 months," the statement said.

The associations office bearers had met senior officials, Deputy Chief Minister and Excise Minister, who had assured them that payments for supplies made between May and August 2024 would be cleared on priority. However, the associations said little progress had been made, and the crisis had deepened.

"Total outstanding dues now stand at Rs 3,366.21 crore, of which Rs 1,959.72 crore has been pending for over a year. The industry pointed out that the government is contractually obligated to clear payments within 45 days, a commitment it has breached repeatedly," the statement said.

While urging the government to clear pending dues by November 10, the associations have warned that if the government failed to clear dues, they would stop supplying liquor to Telangana State Beverages Corporation Ltd (TGBCL) as per the demand in December 2025.