Telangana urged to clear Rs 3,725.73 crore dues to liquor companies

Three leading alcoholic beverage industry associations have urged the Telangana government to clear Rs 3,725.73 crore in pending dues and raised concerns over a new payment mechanism that deducts cash discounts while clearing payments for current supplies within 15 days

Hyderabad: The Brewers Association of India (BAI), International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC) on Friday urged the State government to clear Rs 3,725.73 crore in dues that have been pending from December 2025 to April 2026.

The three associations, which collectively account for over 80 per cent of the liquor, beer and wine sold in the country, raised serious concerns over the State government’s unilateral decision to pay for the supply of alcoholic beverages after 15 days upon deduction of a 2 per cent cash discount.

---

The government, according to the associations, has started a new payment mechanism with effect from June 1, 2026, under which payments for alcoholic beverages supplied to Telangana State Beverages Corporation (TGBCL) in May 2026 have been made after 15 days upon deduction of an early payment cash discount of 2 to 2.75 per cent.

In a joint letter to the government, the three associations said that, as per their records, payments have been cleared for sales up to the first week of December 2025, and payments were pending for the period from the first week of December to the first week of April, amounting to Rs 3,725.73 crore.

“In light of the above, we find the proposed action by the government to start deducting early payment discounts on current supplies disturbing and against the principles of normal commercial transactions. It is also fraught with non-compliance with accounting standards and subject to scrutiny by auditors,” the associations added.