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Delhi Govt's new policy on wine likely on May 1
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Monday, 28 March, 2011, 08 : 00 AM [IST]
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Manjushree Naik, Mumbai
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The Delhi Government is likely to change its policy on wine and separate it from liquor beginning May 1, 2011. A new policy, in this regard, which will also allow selling of wine at special government shops, supermarkets and shops in the national capital, is awaited, according to Jagdish Holkar, president, All-India Wine Producers Association, and chairman, Flamingo Wines.
A delegation from the association met Delhi chief minister Sheila Dixit and union agriculture minister Sharad Pawar in this regard. The delegation also sought the latter's intervention in the various problems faced by wine manufacturers and grape framers in the country in view of surplus production and dwindling demand.
Holkar said that the wine production in the country had come down by 50 per cent to 75 lakh litre this season compared to 1.50 crore litre last season, But efforts were being made to salvage the situation, he said.
The association president explained, "Owing to the surplus production that led to a huge demand-supply gap, farmers had reduced the grape cultivation from 9,000 acre last season to 6,000 acre this season. However, the farmers, as against a price of Rs 10-12 per kg last season, are getting Rs 25-30 per kg this season."
Holkar pointed out that while Delhi, Bangalore, Mumbai and Goa were the major markets in the country, wine manufacturers were not able to tap fully in the Delhi market because of the entry point barrier - company licence fee of Rs 5 lakh - in that state. "This fee proved to be a major hurdle, especially, for smaller manufacturers and farmers. Hence, our delegation met Sheila Dixit and Sharad Pawar. The meeting has proved fruitful and it is likely that the fee will be reduced to just Rs 1 to 1.5 lakh. A declaration is likely in this regard on May 1, 2011."
Holkar also stated that while Indian wine manufacturers were being charged such a heavy fees, foreign ones were getting concessions, which was also brought to the notice of both Dixit and Pawar.
Other factors that led to the glut in the wine market include inter-state duties, the global recession, drop in exports and dwindling tourism in view of the Mumbai attacks. The result was the wine industry was faced with loans amounting to Rs 500 crore. The association also urged the minister for restructuring of these loans by taking into account the nature of the product and an appropriate gestation period so that the industry was able to tide over the situation.
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