Liquor industry urges Telangana to clear ₹3,700 crore dues before enforcing early payment discount scheme

A collective of leading alcoholic beverage manufacturers urged the Telangana government to clear more than ₹3,700 crore in pending dues before implementing a new payment mechanism that deducts an early payment discount from suppliers.

In a joint representation to the State government, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) expressed concern over the government’s decision to make payments for alcoholic beverages supplied to the Telangana State Beverages Corporation Limited (TGBCL) after 15 days while deducting a cash discount of 2% to 2.75%.

The associations, which represent companies accounting for over 80% of liquor, beer and wine sales in India, said the new payment mechanism came into effect on June 1. Under the system, payments for supplies made during May 2026 were reportedly released after deducting the early payment discount.

According to the industry bodies, while the cash discount provision exists in tender conditions, it is intended to be exercised at the request of suppliers and not unilaterally by the buyer. They argued that the government’s decision to clear recent dues while older undisputed payments remain outstanding is contrary to established commercial and accounting practices.

The associations stated that payments have been cleared only up to the first week of December 2025, while dues amounting to ₹3,725.73 crore for supplies made between the first week of December 2025 and the first week of April 2026 remain unpaid.

According to the associations, such a practice could eventually result in legitimate receivables turning into bad debt, placing a significant financial burden on manufacturers and suppliers.