Hyderabad: The delay in payments by the TS Beverages Corporation to liquor suppliers has led to a shortage of some medium and premium brands in retail liquor outlets. The corporation owes about Rs 850 crore to liquor companies.
As per contract the corporation has to pay every week the companies supplying liquor. But the corporation is delaying payments by almost 45 days. Due to financial problems some companies have reduced supplying some brands including premium brands.
Excise revenue is the second major revenue of the government. The excise department is contributing 17 per cent of the taxes. In Telangana there are 16 IMFL manufacturing units and six breweries. The liquor manufacturers are supplying several medium and premium brands to the TS Beverages Corporation. In turn the corporation is supplying them to retail outlets.
According to the contract the suppliers should get payments every week. But the corporation is delaying payments to liquor suppliers. The government released Rs 410 crore in August for July 3rd & 4th week payments. The present due are about Rs 850 crore for the month of August. In July IML depots raised Rs 828 crore and by the third week of August Rs 732 crore (excluding VAT), but the government released only Rs 828 crore out of the Rs 1,560 crore. By the end of August the outstanding dues touched Rs 850 crore.
The Association of Liquor and Beer Suppliers' representatives said the government is delaying weekly payments by 15 to 20 days and sometimes by even 45 days. They said they are operating with the lowest margins in Telangana compared to any other state in the country and no business house will pump extra funds if the margins are thin. They said the delay in releasing payments will lead to trouble in future.
Liquor suppliers are facing this problem trouble since the last one and half years and have written several letters in vain to the government requesting payments in time.
Meanwhile, some wine shops said some companies have reduced the supply of medium and premium brands.
They said they are facing a shortage of medium priced brands like Rayal Stag and Royal Challenge and premium brands like Blenders Pride, Signature, Imperial Blue, Officers Choice and others.
However, officials said that there was no shortage of medium and premium brands in the state.
