Telangana liquor industry on brink as Congress government fails to clear Rs 3,300 crore dues

Telangana’s liquor suppliers have warned of a shortage during the festive season as the Congress government delays Rs 3,366 crore in dues. Industry bodies say persistent non-payment has crippled operations and could hurt ‘Brand Telangana’ and future investments

Hyderabad: Repeated failure of the Congress government in Telangana to clear pending dues amounting to Rs 3,366 crore to liquor suppliers has pushed the State’s alcoholic beverages sector into a financial crisis, raising fears of a shortage ahead of the festive season.

Industry bodies said the government’s persistent delays in payment had paralysed the supply chain, leaving manufacturers and distributors struggling to sustain operations. Despite soaring liquor and beer sales in October 2025, payments to suppliers have fallen by nearly 50 per cent compared to the average of the past four months.

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The International Spirits and Wines Association of India (ISWAI), Brewers Association of India (BAI) and Confederation of Indian Alcoholic Beverage Companies (CIABC) jointly said they 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.

While Rs 484.58 crore was released till October 15, including Rs 350 crore for May 2024 supplies, no payments were made since then. 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 associations suggested that part of the Rs 3,000 crore collected as application fees for new liquor licences in October 2025 be used to clear the arrears. “Unfortunately, this has not happened,” they said, expressing concern that the government had shown no intent to ease the sector’s distress despite its annual contribution of over Rs 38,000 crore to the State exchequer.

With new retail licences taking effect in December, during the peak festive period, demand is expected to rise to nearly 1.75 times the monthly average. Industry members warned they would be unable to meet this surge without immediate payments.

The associations urged the government to clear all pending dues by November 10, warning that failure to do so could lead to a severe shortage affecting retail sales, employment, and the wider ecosystem including transport and logistics.

They cautioned that continued delays could hurt ‘Brand Telangana’ and discourage future investments, not only from the alcoholic beverages industry but also from other sectors supplying to the government.