Hyderabad, Nov 4: As the festive season approaches, Telangana’s liquor manufacturers and distributors have sounded a strong warning that the state could face a severe shortage of alcohol during Christmas and New Year celebrations if the government fails to clear pending dues worth approximately ₹3,000 crore.
According to The Times of India, the arrears — accumulated between July and October — have already caused a 50% decline in liquor supply across the state. Distributors claim that several retail outlets are operating at reduced capacity, while breweries and distilleries are struggling to sustain production due to cash-flow constraints.
“If payments are not released immediately, supply chains will collapse, and Telangana may experience a virtual dry spell during the festive season,” said a senior member of the Telangana Wine Dealers Association.
Industry representatives have submitted multiple requests to the Excise Department, seeking early settlement of dues and clarity on future payment cycles. However, insiders indicate that the state’s fiscal tightening and delays in excise reimbursements have aggravated the issue.
Meanwhile, retail vendors are concerned that limited availability could push consumers toward neighbouring states such as Andhra Pradesh or Karnataka, leading to cross-border leakages and tax losses for Telangana’s exchequer.
Economic experts believe that any disruption in liquor supply could have a ripple effect on tourism, hospitality, and local business activity, especially as year-end parties and events bring in high seasonal revenue for hotels, bars, and restaurants.
Sources suggest that the government may announce a partial release of funds in the coming days to avert an immediate crisis, though an official confirmation is still awaited.
Why It Matters
- Liquor excise is one of Telangana’s top five revenue sources, contributing over ₹35,000 crore annually.
- Disruptions could affect not just businesses but also employment in the beverage and hospitality sectors.
- The crisis comes amid other financial pressures, including pending fee reimbursements to private colleges and delayed project payments.