CIABC urges Telangana to release ₹2,800 cr pending dues

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has appealed to the Telangana government for a supply price revision for alcoholic beverages, citing rising production costs and the absence of a regular annual price review mechanism. The industry body has sought a price escalation linked to the Wholesale Price Index (WPI), allowing for systematic, inflation-based adjustments.

In a formal representation, CIABC has also requested the immediate release of ₹2,800 crore in overdue payments, pending for more than 45 days, along with ₹400 crore in accumulated interest.

Director General of CIABC Anant S. Iyer highlighted that the last price revision in the state took place in May 2023, while input costs have surged sharply since then. “From extra neutral alcohol and malt spirit to packaging materials, labour, and transportation, costs have increased across the board,” he said.

He further pointed out the revenue share disparity, where the government currently retains over 70 percent of the maximum retail price (MRP), while manufacturers receive only 12-15 percent, and retailers about 15-18 percent. “As the government’s income grows through interim tax increases, manufacturers are forced to absorb the cost burden, affecting their profitability,” he added.

To mitigate this financial strain, CIABC has proposed a modest supply price hike—₹100 to ₹200 per case for Indian Made Foreign Liquor (IMFL), and a 5 percent hike for wine. This, according to the CIABC, would only result in a retail price increase of ₹2.50 to ₹5 per 180 ml bottle.

While the beer industry in Telangana has already received approval for a price increase, the spirit and wine segments continue to face similar cost pressures without any relief. “The financial viability of the industry is at serious risk. Any further taxation without adequate supply price adjustments could jeopardise operations,” Iyer warned.