Use liquor retailers licence public sale proceeds to clear 3,151 crore dues: Alcoholic beverage business urges Telangana

Leading alcoholic beverage business our bodies have urged the Telangana authorities to make use of the proceeds from the upcoming retail liquor store licence public sale to clear pending dues amounting to ₹3,151 crore owed to suppliers.

In a joint enchantment, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC) stated that of the full overdue quantity, over ₹2,300 crore has been pending for greater than a yr. The associations warned that continued delays may jeopardise provides and threaten the sector’s survival.

₹3,000 crore income anticipated

The associations famous that the tender course of for renewal of retail licences later this month is predicted to fetch greater than ₹3,000 crore, which they’ve urged the state to earmark for clearing long-standing dues. “If outdated excellent dues aren’t cleared instantly, many corporations might battle to keep up provides,” they stated.

32% contribution to income

Despite the business contributing 32% to the State’s revenues and producing round ₹38,000 crore in excise revenue in 2023–24, a 13% compound annual development price over 5 years, the sector is reeling underneath monetary pressure.

The associations have additionally sought a discount prematurely excise responsibility from 30% to 1% as a short lived measure to enhance liquidity and maintain operations.

Over the previous two weeks, business representatives have met senior Cabinet members, together with the Deputy Chief Minister and the Excise Minister, to spotlight the difficulty. They stated that clearing the arrears would assist restore confidence, guarantee uninterrupted provide, and reinforce the credibility of the excise system.

“Sales are anticipated to extend 1.5 instances when the brand new licences take impact in December 2025, coinciding with the festive season. Unless rapid steps are taken to handle delayed funds, the business might battle to satisfy demand, affecting not solely the suppliers and the customers, but additionally the State Government by the use of decrease tax revenues,” the joint assertion added.

The associations say they signify over 80% of liquor, beer, and wine offered throughout India and contribute considerably to employment, taxes, and social welfare initiatives within the State.