Alcohol industry faces tough times in Indian market
Heineken halts supplies to Telangana due to outstanding payments
State minister calls the move a 39;tactic39; to hike prices
Telangana is India39;s biggest beer consumer

NEW DELHI, Jan 9 Reuters Global alcohol companies such as Diageo, Pernod Ricard and Carlsberg are demanding unpaid dues of about 466 million from India39;s Telangana state, where Heineken suspended supplies this week in an unprecedented move, three industry sources said.

India is the world39;s eighthbiggest alcohol market by volume, with annual revenues that Euromonitor estimated last year at 45 billion. Its states individually regulate pricing of alcohol products, which are major contributors to their revenue.

Heineken39;s United Breweries has said it will halt supplies to southern Telangana, India39;s biggest beer consumer, because of delayed payments and lack of government approval for higher prices since fiscal 201920, which hurt its finances.

Wednesday39;s unusual move by India39;s biggest beer company sparked a fall of 7 in its shares at a time when the industry faces intense scrutiny nationwide.

The antitrust watchdog is separately investigating accusations of collusion by AnheuserBusch InBev and France39;s Pernod to boost market share, having raided their offices in December. Both are cooperating with Indian authorities.

Many places like Telangana require liquor companies to supply only to staterun depots, which then sell to retailers,…