Out 19 distilleries in Telangana, 14 manufacturing units have completely halted liquor production. As a result, the supply of whisky to the licensed liquor shops will be stopped with the non availability of the stocks.
The managements of the distilleries have been demanding Chief Minister K Chandrasekhar Rao's government to reduce license fee by 50 percent for the last two years. After the bifurcation of Andhra, Telangana government doubled the license fee which put heavy burden on distilleries to run the business.
The managements says Telangana was the lone state collecting the highest license fee in the country. The neighboring Andhra Pradesh did not increase the fee and in Karnataka and Tamil Nadu also, governments are collecting low fees. The distilleries decided not to resume liquor production until the government rolls back the increased fee structure.