HYDERABAD: Liquor manufacturers supplying to Telangana have raised serious concerns over unpaid dues totalling ₹3,100 crore, accusing the state government of withholding payments even as it continues to reap thousands of crores in revenue through the excise department.
Despite record alcohol sales, both Indian and foreign liquor companies allege that the state is failing to honour its financial commitments. As many as 52 companies are involved in supplying liquor to Telangana, including six breweries and nine domestic manufacturers. The remainder are firms based outside the state or abroad.
According to industry representatives, the delay in payments is putting immense strain on operations. Ananth S. Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies, wrote to Chief Minister Revanth Reddy on 14 April, seeking immediate disbursal of at least ₹2,000 crore to avert supply disruptions. The letter highlighted rising input costs and urged the government to allow price hikes for spirits, similar to the recent increase approved for beer.
Under standard procurement norms, the government is expected to clear liquor payments within 45 days. However, industry insiders say that recent months have seen a halt in even partial monthly payments, allegedly due to the lack of authorisation from the finance department.
While the government continues to channel excise, transport, and registration revenues into its treasury, insiders claim much of this income is being diverted towards welfare schemes. With mounting debt and constrained finances, the administration has reportedly deprioritised payments to suppliers. The liquor sector, though one of the government’s top revenue sources, is feeling the brunt of this budgetary squeeze.
Adding to tensions is the government’s reported consideration of further liquor price hikes and new bar licences to boost revenue. Critics have pointed out the irony in this shift, noting that the same Congress leaders who once decried Telangana’s alcohol dependency are now overseeing a surge in liquor sales.
Suppliers have indicated that continued non-payment could force them to halt production and distribution, threatening a significant disruption in alcohol availability across the state.
