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ICRIER study suggests tariff liberalisation for wine imports
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Friday, 03 June, 2022, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Indian Council for Research on International Economic Relations (ICRIER) study on ‘wine trade under India Australia CECA (comprehensive economic cooperation agreement)' suggested phased tariff liberalisation for wine imports to gain market access for its exporters.
“India cannot sign trade agreements with its key export markets without reducing tariffs for alcoholic beverages and must offer phased tariff liberalisation in high growth areas like wine to gain market access for its exporters,” ICRIER has said.
The report titled, “Liberalisation of Wine Trade under the India-Australia CECA” by Arpita Mukherjee and Drishti Vishwanath, published by Academic Foundation, focuses on the scope for liberalisation of tariffs in wines and removal of non-tariff barriers under the India-Australia comprehensive agreement (CECA), due to be signed in December 2022.
“While Indian consumers’ want access to quality wines at cheaper rates, the threshold price of bottled wine that has been liberalised under the ECTA is over US$5 and US$15 CIF. Thus, the duty reduction benefits only the upper end of wine imports and high income consumers. The rest of wine imported from Australia – about 98%, which is consumed by middle income consumers - continues to attract a duty of 150%. The report proposed a maximum threshold of USD25 per case of 9 litre/12 bottles of 750 mil / (FOB), which benefits the wine industry in both countries, reduces prices for middle-class consumers and enables the Indian hotel and tourism industry to grow,” the study report says.
Among alcoholic beverages, tariffs were the highest for wine, with the price of imported wine ranging at between 200 and 400% of the global average price. For more than two decades, countries such as Australia and the USA have expressed concerns about the high import duties, which act as a major disincentive for wine exporters from these countries/regions to India.
The report was released by Manpreet Vohra, high commissioner, High Commission of India, Canberra, Australia, Sarah Storey, deputy high commissioner, Australian High Commission, India, Kuntal Sensarma, economic advisor - MoFPI, GoI, Anil Wadhwa, former ambassador; distinguished fellow, Vivekananda International Foundation (VIF), and Dr. Deepak Mishra, director & CE, ICRIER in New Delhi.
The release was followed by a panel discussion on “Enhancing Trade and Collaborations in Wines under the India-Australia CECA”.
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