Hyderabad, 12 June
Liquor Suppliers Urge Telangana Government to Clear Rs 3,700 Crore Pending Dues. Leading liquor industry bodies have urged the Telangana government to immediately clear outstanding dues exceeding Rs 3,700 crore, raising concerns over a newly introduced payment mechanism that they say violates established commercial and accounting practices.
The appeal was made jointly by the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC). The associations have objected to the government’s move to process payments for recent supplies while older undisputed dues remain unpaid.
According to a statement issued by the industry bodies on Friday, pending payments for liquor supplies made between December 2025 and April 2026 have accumulated to Rs 3,725.73 crore.
Industry Bodies Oppose New Payment Mechanism
The associations argued that the Telangana government’s decision to deduct cash discounts on current supplies while leaving older dues unpaid is contrary to normal commercial practices.
They pointed out that cash discounts are part of tender conditions and are generally exercised at the request of suppliers rather than being imposed by the buyer. The industry bodies said the current approach raises concerns regarding accounting compliance and financial transparency.
Liquor Suppliers Urge Telangana Government. In a joint letter to the government, the associations stated that payments have been cleared only up to the first week of December 2025, while dues for subsequent months remain outstanding.
Concerns Over Accounting Standards
The liquor industry bodies warned that clearing newer invoices before settling older dues could create complications under standard accounting norms and may attract scrutiny from auditors.
According to the associations, such a practice goes against the widely accepted principle of settling payments in chronological order. They expressed concern that continued delays in clearing older dues could adversely affect the financial health of companies operating in the sector.
The associations further stated that if current payments continue to receive priority, suppliers may face increasing pressure on cash flows and working capital management.
Risk of Outstanding Dues Turning Into Bad Debt
Industry representatives also expressed fears that the government could prioritize newer payments to benefit from cash discount provisions while older outstanding amounts remain unpaid.
They warned that prolonged delays could result in legitimate receivables gradually turning into bad debt, creating substantial financial risks for manufacturers and suppliers.
The industry emphasized that timely payments are critical for maintaining smooth supply chains, production schedules, and business operations across the alcoholic beverage sector.
Industry Seeks Immediate Clearance of Pending Payments
Liquor Suppliers Urge Telangana Government to Clear Rs 3,700 Crore Pending Dues
The associations have urged the Telangana government to release payments in chronological order and immediately clear the outstanding dues.
They maintained that resolving the issue would help restore confidence among suppliers, ensure compliance with standard accounting practices, and prevent further financial strain on the industry.
The matter comes at a time when the alcoholic beverage sector is closely monitoring payment cycles and liquidity conditions, making the resolution of pending dues a key concern for industry stakeholders.
Impact on Liquor Industry Operations
Liquor Suppliers Urge Telangana Government to Clear Rs 3,700 Crore Pending Dues. The industry bodies stated that delayed payments can have a significant impact on the overall functioning of the alcoholic beverage sector. Manufacturers depend on timely payments to manage production costs, procure raw materials, maintain inventory levels, and meet operational expenses.
They noted that prolonged delays in receiving payments could affect cash flow management and increase financial pressure on companies across the supply chain. Smaller suppliers and distributors may be particularly vulnerable to payment delays, as they often rely on regular settlements to sustain day-to-day business activities.
Industry representatives also emphasized that a predictable and transparent payment mechanism is essential for maintaining investor confidence and ensuring smooth business operations. They said the timely clearance of pending dues would not only benefit suppliers but also help strengthen the overall business environment in the state.
Liquor Suppliers Urge Telangana Government. The associations reiterated their request for the government to address the issue at the earliest and establish a payment process that aligns with accepted commercial and accounting practices.
(Further developments are awaited regarding the government’s response to the industry’s concerns.)