Business Economy


Alcoholic Beverage Industry urges Telangana Govt to Clear ₹3,700 Cr dues before Enforcing Early Payment Discount Scheme

Hyderabad, June 12 (UNI) Leading alcoholic beverage industry bodies on Friday urged the Telangana Government to clear more than ₹3,700 crore in pending dues before implementing a new early payment discount mechanism for supplies made to the state-run Telangana State Beverages Corporation Limited (TGBCL).
In a joint representation, Brewers Association of India (BAI) Director-Gereral Vinod Giri , International Spirits and Wines Association of India (ISWAI) Chief Executive Officer Sanjit Padhi and Confederation of Indian Alcoholic Beverage Companies (CIABC) Director General Anant Iyer expressed concern over the state's decision to make payments for alcoholic beverage supplies within 15 days after deducting an early payment cash discount of 2 to 2.75 per cent.
The industry associations said the new mechanism came into effect from June 1, 2026.
The associations, which together account for more than 80 per cent of liquor, beer and wine sales in the country, argued that while the cash discount provision exists in tender conditions, it is intended to be exercised at the request of suppliers and not by the buyer.
They contended that the government's decision was contrary to standard accounting practices, particularly when older undisputed dues remain unpaid.
According to the industry bodies, 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 December 2025 and April 2026 are still pending.
They warned that settling recent invoices while leaving older dues unpaid could create accounting complications and expose companies to auditor scrutiny.
The associations also expressed concern that monthly payouts could be diverted towards clearing current supplies in order to avail the discount, while older outstanding payments continue to accumulate.
They cautioned that such a practice could eventually turn legitimate receivables into bad debts, imposing a significant financial burden on the industry.
The industry has urged the Telangana Government to release payments in chronological order and immediately clear pending dues before implementing any discount-related mechanism.
In their joint letter, the associations requested the government not to proceed with measures they described as inconsistent with normal commercial practices.
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