Hyderabad: The Confederation of Indian Alcoholic Beverages Companies (CIABC) has urged the Telangana govt to clear dues totalling Rs 3,100 crore to various companies and also increase supply prices. CIABC is the apex body of Indian alcoholic beverage manufacturers.
In a statement issued on Monday, (CIABC) director general Anant S Iyer said that despite repeated representations and assurances by the state govt, the issue of payment of dues has not been resolved.
“Today, the total overdue amount exceeding 45 days stands at Rs 3,100 crore approximately, while the cumulative interest burden on this outstanding amount is close to Rs 325 crore. Despite this, our members have ensured an uninterrupted supply of stock to the state,” he said.
CIABC has alleged that that since late 2023, payments from Telangana govt have been consistently delayed beyond the stipulated 45-day credit period as outlined in the RCA (rate contract agreement).
“Apart from delayed payments, financial stress has been increased as we have to pay the licence fee and label registration fees in advance for the current fiscal. The uncertainties in payments are hurting a robust business in the state. Such a scenario is not only discouraging new investments but is also making existing investments in the state commercially unsustainable,” Iyer said.
Industry associations have also urged the state govt to allow price increase for supplies to meet the massive increase in production cost. They said that alcoholic beverages industry has been facing tremendous inflationary pressure in terms of cost of blending materials, packaging, transportation, labour etc..
“To top this, the interest burden on account of late settlement of outstanding is huge. Cumulative impact of such increases has led to a steep rise in the cost of production ranging from Rs 100 to Rs 200 per case, depending on the category segments,” it said.