Bengaluru: The Telangana alcohol market stares at disruption. The highest bodies of alcoholic beverage in the country called on the state government to urgently clearly £3 151 crore fees to suppliers, warning that further delay could seriously disrupt the offer of liqueur and destabilize the state alcohol market before the festive season. The celebrations around Diwali during Christmas and New Year indicate the peak of alcohol sales in the country.
In India, prices and taxation and liqueur regulations fall within the competence of state governments. Each state has its own excise duty policy, which oversees the sale, prices and distribution of alcoholic beverages, and therefore prices are changing across states. Taxes collected from the sale of liqueur are a major source of income for state governments.
In a common statement, the Indian Association of International Ghost and Wine Association (ISWAI), the confederation of Indian alcoholic beverage companies (CIABC) and Brewers Association of India (BAI) referred to the state to take advantage of the proceeds from the upcoming retail auction of liqueur license – expected to increase around around £3 000 crore – settled out of outstanding payments.
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Out of total fees, more than £2,300 Crore has been waiting for more than a year, so suppliers leave under financial tension and try to maintain operations. Telangana is one of the top five India countries in terms of alcohol sales.
The Association also urged the state to temporarily reduce the excise duty from 30% to 1% to alleviate the pressure of the working capital. Pointed out that while the state consumer income from the sale of alcohol increased on £38,000 crore in the fiscal year 2024 (FY24), growing annual 13% measure in the last five years, the industry is still struggling with pending payment pending. Alcoholic beverages contribute almost 32% to Telangana income and support approximately 1.5 million jobs across production, logistics and retail.
“If immediate steps are not taken to deal with delay payments, the industry may try to meet the expected increase in demand, when in December 2025 the new retail license is in force, which is coincident with the festive season,” the statement said.
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The appeal comes in the middle of the growing financial stress in the state sector Alcobev. At the beginning of this year, Mint reported on how United Breweries LTD (UBL), which instructs almost 70% of the TELANGANA beer market, suspended the supply (TGBCL)-the entity that was accepted that it is, that it is not, that it is not The fact that it is, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s, it’s not.
The state agency revised prices for five years despite the increase in the cost of inputs such as barley, sugar, fuel, electricity and glass bottles. Beer prices in Telangana are currently about 47% lower than in neighboring countries, pressing suppliers.
TGBCL was established in 2014 after the state of the state from Andhra Pradesh. Despite repeated dismissal of industrial players, the corporation did not clean the waiting payments or revise the price structures to reflect inflation and increasing production costs.
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These three associations represent a significant share of Indian production and alcohol sales. Iswai members include global giants such as Bacardi, Diageo-United Spirits, Pernod Ricard, Moët Hennessy, Beam Suntory and Campari Group. Ciabc represents the main Indian producers such as Allied Blenders & Distillers, Radico Khaitan, Amrut Lihowleries, Sula Vineyards and John Distillaies. BAI includes leading breweries such as United Breweries Ltd, AB InBev and Carlsberg.
The delay of payments stems from the fiscal challenges of Telangana between February to August 2024, when the state faced lower than expected incomes and increased expenditure on social security systems and the promise of the survey, Mint reported earlier.
(Tagstotranslate) Telangana Liquor Dues (T) Rs 3151 Crore Dues (T) Alcobev Industry Crisis Telangana (T) Telangana Liquor Supply Disruption (T) Festive Season Liquor Sales India (T) Telangana (T) United Breweries Supply Suspension (T) ISWAI CIABC BAI Joint statement (T) Telangana Retail Retail Liquer License Auction (T) Advance Enlise Duty Reduction (T) Sector Jobs India (T) Liqueur market Bengaluru (T) United breweries LTD losses
