Indian Liquor Industry Requests Telangana Government to Settle Rs.3,100 Crore Dues, Proposes Price Increase to Counter Rising Costs

Varahi media.com online news, news,Hyderabad, April 15, 2025: The Indian liquor industry has called upon the Telangana government to expedite the clearance of outstanding dues amounting to ₹3,100 crore, citing severe financial strain and working capital challenges that are disrupting business operations across the sector. The industry has also appealed for a price increase to address the sharp rise in production costs.

Industry associations and manufacturers have written to Telangana Chief Minister Anumula Revanth Reddy, Excise Minister J. Krishna Rao, and senior officials of the Prohibition and Excise Department, urging the Telangana State Beverages Corporation Limited (TSBCL) to clear overdue payments and provide relief to the struggling sector.

According to the Rate Contract Agreement (RCA), supplier payments are expected within a 45-day window. However, since late 2023, payments from the state have been consistently delayed well beyond this period. This has forced companies to operate under heavy financial pressure, escalating interest costs and impacting their ability to maintain uninterrupted supply.

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ఇది కూడా చదవండి..సైబర్‌సిటీ బిల్డర్స్ అందించిన విలాసవంతమైన “విల్లా వెర్డే” ప్రాజెక్ట్ గ్రాండ్‌గా ప్రారంభం

Mr. Anant S. Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), expressed deep concern, stating:

“Despite numerous appeals and commitments, the dues remain unpaid. The total outstanding beyond the 45-day period has now crossed ₹3,100 crore, and the cumulative interest burden has reached approximately ₹325 crore. Still, our members have managed to ensure continuous supply to the state.”

He further added that companies are also under pressure to pay licensing and label registration fees upfront for the current financial year, worsening the already strained financial condition.

“This unpredictable payment scenario is making existing investments unviable and discouraging potential new investments in the state,” he remarked.

The industry is also pushing for a price revision for spirits and wine, following a recent price increase allowed for the beer segment.

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“Input costs for blending materials like ENA and malt spirit, packaging materials, logistics, and labor have all risen steeply. With added interest due to delayed payments, the production cost per case has surged by ₹100–₹200 depending on the segment,” Mr. Iyer noted.

The liquor industry emphasizes that without immediate government intervention—both in clearing pending dues and allowing a justified price increase—the sector risks long-term disruption, loss of investor confidence, and potential supply shortages.

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