Liquor Industry Flags Telangana Over ₹3,725 Crore Payment Dues

The Indian arms of global alcohol majors, including Diageo, Pernod Ricard, Heineken and Carlsberg, have raised concerns over unpaid dues amounting to nearly $400 million (₹3,725 crore) from the southern Indian state of Telangana. Industry associations representing around 80% of India’s liquor, beer and wine market accused the state of violating accounting norms by prioritizing payments for new supplies while leaving older dues unsettled.

Under Telangana’s liquor distribution system, alcohol manufacturers can only supply products to state-run depots, which then distribute them to retailers. This arrangement leaves companies dependent on the state government for payments. While Telangana has reportedly begun clearing recent dues ahead of schedule, industry bodies claim that older outstanding payments dating from December 2025 to April 2026 remain unpaid. They argue that early-payment discounts require prior agreement from suppliers and cannot be imposed unilaterally.

In a joint statement, the Brewers Association of India, the Confederation of Indian Alcoholic Beverage Companies, and the International Spirits and Wines Association of India warned that prolonged delays could convert outstanding receivables into bad debts, creating significant financial risks for the sector. The dispute adds to broader challenges faced by global alcohol companies in India, where high taxation, varying state regulations, and ongoing legal battles continue to affect profitability despite the country’s growing demand for alcoholic beverages.

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