The industry body said that sales are expected to increase 1.5 times when the new licences take effect in December 2025. The image is used for representative purposes only.
| Photo Credit: RAO GN
Leading alcoholic beverage industry bodies have urged the Telangana government to use the proceeds from the upcoming retail liquor shop licence auction to clear pending dues amounting to ₹3,151 crore owed to suppliers.
In a joint appeal, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC) said that of the total overdue amount, over ₹2,300 crore has been pending for more than a year. The associations warned that continued delays could jeopardise supplies and threaten the sector’s survival.
₹3,000 crore revenue expected
The associations noted that the tender process for renewal of retail licences later this month is expected to fetch more than ₹3,000 crore, which they have urged the state to earmark for clearing long-standing dues. “If old outstanding dues are not cleared immediately, many companies may struggle to maintain supplies,” they said.
32% contribution to revenue
Despite the industry contributing 32% to the State’s revenues and generating around ₹38,000 crore in excise income in 2023–24, a 13% compound annual growth rate over five years, the sector is reeling under financial strain.
The associations have also sought a reduction in advance excise duty from 30% to 1% as a temporary measure to improve liquidity and sustain operations.
Over the past two weeks, industry representatives have met senior Cabinet members, including the Deputy Chief Minister and the Excise Minister, to highlight the issue. They said that clearing the arrears would help restore confidence, ensure uninterrupted supply, and reinforce the credibility of the excise system.
“Sales are expected to increase 1.5 times when the new licences take effect in December 2025, coinciding with the festive season. Unless immediate steps are taken to address delayed payments, the industry may struggle to meet demand, affecting not only the suppliers and the consumers, but also the State Government by way of lower tax revenues,” the joint statement added.
The associations say they represent over 80% of liquor, beer, and wine sold across India and contribute significantly to employment, taxes, and social welfare initiatives in the State.
Published – October 10, 2025 12:02 pm IST
