Liquor suppliers cry foul over discount claims while dues pile up

Hyderabad: Liquor manufacturers supplying the state-run Telangana Beverages Corporation Limited (TGBCL) are raising alarm over what they call a troubling practice: The corporation is claiming cash discounts on fresh payments even as older bills remain unpaid for months.Under the current framework, suppliers extend discounts based on how quickly TGBCL clears invoices — 2.75% if paid within 15 days, 1.75% between 15–30 days, and 0.75% within 45 days. The system is meant to reward prompt payments and ease supplier cash flows.Industry representatives point out that discounts are calculated on invoices generated after TGBCL sells liquor supplied by manufacturers. This arrangement is designed to incentivise timely payments and improve cash flows for suppliers.But suppliers say payments for a large chunk of supplies have been pending for nearly five months. Despite this, the corporation recently released payments for sales made in late May and claimed the maximum 2.75% discount, citing settlement within the 15-day window.Sources stress that the issue is not the deduction itself — which is part of agreed terms — but the contradiction of claiming discounts on recent transactions while older dues remain stuck.Suppliers warn that the delays have worsened working capital pressures and financing costs. They also highlight a slew of other deductions the industry bears: ground rent, breakage recoveries, excise duty on destroyed stock, barcode mismatch penalties, and trade fees.