Alcobev industry cautions of supply halt in Telangana over unpaid dues

The International Spirits and Wines Association of India (ISWAI), the Brewers Association of India (BAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) have jointly warned that Telangana’s alcoholic beverages sector is in the grip of a severe financial crisis due to worsening payment delays by the state government, according to a report.

In a joint statement, the associations said that despite a surge in liquor sales and excise revenue in October 2025, driven by festive demand, payments from the state-owned Telangana State Beverages Corporation Ltd (TSBCL) to suppliers fell sharply.

“While sales of alcoholic beverages and revenue collections shot up in October 2025, the payments to suppliers actually fell by almost 50 percent compared to the average disbursal during the previous four months,” the statement said.

Industry representatives from the three associations had earlier met senior government officials, including the Deputy Chief Minister and the Excise Minister, who assured them that payments for supplies made between May and August 2024 would be prioritised. However, the associations said that little progress has been made since those assurances, and the liquidity crisis has only worsened.

According to the statement, total outstanding dues now stand at ₹3,366.21 crore, of which ₹1,959.72 crore has remained unpaid for over a year. The industry bodies also noted that the state government is contractually obligated to clear supplier payments within 45 days, a commitment that has not been honoured.

Urging the Telangana government to release pending dues by November 10, the associations warned that failure to do so could force manufacturers to suspend liquor supplies to TSBCL starting December 2025.