Liquor firms urge Telangana to clear ₹3,700 cr dues before discount rollout

India’s apex alcoholic beverage industry bodies have urged the Telangana government to clear outstanding dues of about ₹3,700 core before implementing a new early-payment discount mechanism for liquor supplies.

In their joint letter, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC), which collectively account for more than 80 per cent of the liquor, has said “We would like to bring to your notice that, as per our records, as on date, payments have been cleared for sale up to first week of December, 2025, and pending payments for the period first week of December to first week of April 2026, to the tune of ₹3725.73 crore is still pending.”

The industry’s concern follow Telangana’s decision to introduce a payment mechanism effective June 1, under which payments for alcoholic beverages supplied to the Telangana State Beverages Corporation Ltd (TGBCL) in May 2026 are being released within 15 days, subject to an early payment cash discount of 2 to 2.75 per cent.

Industry associations have argued that while the discount provision exists in the tender conditions, it is intended to be available at the supplier’s discretion. They contend that the current practice departs from standard accounting and commercial principles.

The association bodies also have also expressed concern that Telangana might continue directing its monthly payouts towards recent invoices to avail of the cash discount. Over time, this could result in a growing stock of overdue receivables, increasing the risk of debts and imposing a significant financial burden on the liquor industry.

The industry also urges the Government to release payments in chronological order and immediately clear the pending dues.