Global liquor companies have collectively accused the Telangana government of not paying them dues of over Rs 3,700 crore over months, and then introducing a policy for discounts on new payments it is supposed to make.The companies are represented by bodies including the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC), which represent about 80% of the total liquor, beer and wines sold in the country.The Telangana government, meanwhile, is “ready to clear the pending payment” and “we are working on a solution”, Principal Secretary, Excise, Raghunandan Rao, told The Indian Express.Telangana is India’s biggest beer-consuming state by volume. Here, liquor companies supply only to state-run depots, under the Telangana State Beverages Corporation, which then sells to retailers. This makes the companies rely on the state government for payments.According to the brewers, the payments from December 2025 to April 2026, amounting to Rs 3,700 crore, are pending. Moreover, the state government has introduced a new method of payment starting June 1.Under this method, the state government will pay the companies within 15 days of delivery of liquor, but will deduct an early payment cash discount of 2 to 2.75%. This new system has already kicked in even before the clearing of pending dues, the brewers representing alcohol giants Diageo, Pernod Ricard, Heineken and Carlsberg said in a joint statement.“Old outstanding (payments) may remain unpaid turning into bad debt over time thus creating massive financial burden and risk for the industry,” the groups said, adding not paying old dues first was “fraught with non-compliance” with accounting standards.What does the Telangana government say?Story continues below this adThe Telangana government said that the new payment policy allows early payments to be made at a slightly lower rate. “This is an early payment discount. We are ready to pay on the day of delivery too on a first come first serve basis. That is, those who supply on the earliest date will be paid first compared with those who deliver at a later date,” Rao said.The companies, in their statement said that the government is acting unilaterally. But Rao claimed, “This is not a unilateral decision. It is based on a pre-signed contract that exists between each of the companies involved and the Telangana state government.”About the pending dues, the state government is “ready for any discussion” so there is no problem regarding liquor sales in the state. “There is no impasse at the moment. We are ready to clear the dues,” Raghunandan Rao said.Nikhila Henry is an Assistant Editor at The Indian Express, based in Hyderabad. With a career spanning 17 years, she has established herself as an authoritative voice on South Indian affairs, specialising in the complex intersections of politics, education, and social justice. Experience & Career: Nikhila commenced her journalism career in 2007 as an education correspondent for The Times of India in Hyderabad,where she gained recognition for her coverage of student politics. Her professional trajectory includes a four-year tenure at The Hindu, where she focused on minority affairs and social welfare. In 2019, she took on a leadership role as the South Bureau Chief for The Quint, where she directed regional coverage across all five South Indian states. Her expansive career also includes a tenure at the BBC in New Delhi and contributions to prestigious international outlets such as The Sunday Times (London) and HuffPost India. Expertise & Focus Areas Nikhila’s reportage is marked by a deep-seated understanding of grassroots movements and institutional policy. Her core focus areas include: Regional Politics: Comprehensive analysis of the socio-political dynamics across South India. Education & Student Movements: Chronicling the evolution of Indian academics and the rise of youth activism. Minority Affairs: Rigorous reporting on the welfare, rights, and challenges facing marginalized communities. National Beat: Elevating regional stories to national prominence through investigative and on-ground reporting. Authoritativeness & Trust A respected figure in Indian media, Nikhila is not only a seasoned reporter but also an accomplished author and editor. She authored the critically acclaimed book The Ferment: Youth Unrest in India and edited Caste is Not a Rumour, a collection of writings by Rohith Vemula. Her dual background in daily news reporting and long-form authorship allows her to provide readers with a nuanced, historically-informed perspective on contemporary Indian society. Find all stories by Nikhila Henry here. ... Read More Tags:Express Explained