- By Chetna Shree
- Thu, 20 Nov 2025 04:06 PM (IST)
- Source:JND
Telangana News: Telangana’s liquor sector is grappling with a severe financial crisis, with mounting dues raising concerns about the stability of one of the country’s largest alcohol markets. According to industry experts, delays in clearing pending payments can increase the risk of major global suppliers halting shipments, a move that could trigger statewide supply shortages.
According to industry associations, the Telangana government owes liquor companies an estimated Rs 29.85 billion (about $337 million). Companies report that long-standing dues remain unsettled, and fresh dues are also being delayed, creating a cash-flow crunch that is pushing several companies to the edge of financial crisis, News18 reported.
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What’s Behind Telangana’s Liquor Industry Crisis?
The crisis stems from Telangana’s government depot model, under which all liquor and beer sales pass through state-run depots before reaching retailers. Supplies rely entirely on the government for payments, and delays in clearing dues are disrupting the entire supply chain. According to industry associations, unpaid dues are leaving producers with insufficient working capital to sustain their operations.
Earlier this year, in January, United Breweries, which produces the popular Kingfisher beer and is now operated by Dutch multinational Heineken, halted supplies over a similar issue. Industry associations warn that other companies could halt shipments if the pending dues are not cleared.
The crisis comes at a crucial time as demand in Telangana usually rises by 75 per cent during the festival season. If the payment delays continue, shops could face supply shortages just as buyers are looking to stock up. The industry associations have urged the Telangana government to clear payments promptly and restore the supply chain before the situation turns into a major market disruption.