Telangana Faces Liquor Crisis As Government Owes Industry Rs. 4000 Crores

Days after the announcement of the unexpected 2024 Lok Sabha election results, another crisis has come to the fore in the southern state of Telangana- the liquor crisis.

As bitter discontent is festering among liquor industry over mounting dues owed by the government. Telangana government has accumulated the dues of over 4,000 crores, which it owes to liquor industry.

Out of which, Rs. 1,200 crore is owed to beer industry since October 2023.

According to liquor companies, there is a significant decrease in cash flows and working capital due to minimal payments received from the Telangana government.

As a result, Industry associations like International Spirits & Wines Association of India, Confederation of Indian Alcoholic Beverage Companies and All India Brewers Association have sent numerous letters to the Telangana government requesting payments.

The situation has reached such a point, some breweries are thinking of closing their operations.

The Director of Brewers Assocation of India General Vinod Giri declared that industry has requested the government to clear the past dues, as the elections are now over.

Further, Giri has also added, even though some payments are being released, however, the amounts are small, and they don’t cover newer ones neither old one.