Liquor industry crisis in Telangana affects excise revenues

For the first time since Telangana came into being in 2014, there has been a reduction in monthly excise income growth in the state, which can be attributed to the southern state’s ongoing liquor industry crisis.

The cumulative growth of liquor income of Telangana was only 3 percent in the 2023-24 financial year as compared to 19 percent cumulative growth of liquor income of the state, in the 2022-23 financial year.

Many middle and small alcobev players operating in the state have initiated reducing staff strength. There are also pockets of discontentment among many alcobev players operating in the state with the long pending dues from the Telangana State Beverages Corporation (TSBCL). As a result of non-payment of dues, many liquor companies have stopped giving discounts to liquor shops in Telangana directly for purchasing their brands, which has caused a decline in liquor sales in Telangana.