A committee set up by the ministry of food processing
that includes excise secretaries of all states is deliberating
on these issues and is expected to come up with its
suggestions early next year. "The committee has
already met twice and is likely to submit its report
by February," accordo the report.
Ministry seems to be of the view that wine should be
treated differently from hard liquor, like whiskey and
rum, and preferential treatment should be given for
its promotion. Therefore, it is pushing for allowing
sale of wine in departmental stores. The policy has
already been implemented in Maharashtra and Karnataka.
The Delhi government too is likely to allow sale of
wine in local stores soon.
In 1975, the Union Cabinet decided to ban creation
of additional capacity for distillation or brewing alcoholic
drinks, except in 100% export oriented cases. In 1997,
the Supreme Court ruled that industries engaged in manufacturing
alcohol for potable purposes will be under the executive
control of state government. However, now the ministry
of food processing is of the view that financial assistance
can be provided to wine industry based on agri horticultural
produce.
"The ministry has set up a National Wine Board
to develop standards and promote domestic wine industry
so that they may stand stiff competition thrown by Australian
and French wines," said an official. Competition
from foreign wines is expected to intensify with the
recent reduction in Customs duties on wines and spirits.
Another reason why the government wants preferential
treatment for wine is because it leads to agricultural
diversification and employment generation in the rural
sector. These measures could also lead to weaning people
away from hard liquor and, at the same time, countering
large wine imports, the official said.
The government is also working on setting up wine parks
with common infrastructural facilities. One such proposal
is to set up a wine park in Nandi Valley on public-private
partnership.
Full report: http://economictimes.indiatimes.com
While the thought is certainly noble, the action
seems to be slow in coming. Maharashtra has already
taken the lead and the excise policy of 2001 has been
something to envy about. However, in ordr to keep the
quality and prices of Indian wines under check, the
government must encourage a fair and healthy competition
between the Indian and foreign wines. It appears from
the government spokesmen that the government plans to
bring back the regime of Fiat and Ambasssdor cars in
this modern age of global competition. It must provide
all possible support to the farmeres in terms of technology,marketing
and financial support but the policies should encourage
competition and improvement of the quality.
It is an open secret that the states cannot be
coerced into taking the view that the government wants
to take. Delhi was one of the first governments to decide
allowing the supermarkets to sell wine-till date this
has not been given a positive shape. By increading customs
duties to 150% across the whole range has practically
sealed the future of good quality wines which are not
competing with the domestic wines at all and can provide
a benchmark for higher quality.
However, it is heartening to note that the government
has woken up to the need and benefit of promoting wine
against hard liquor and any efforts and results thereof
will augur well for wine consumers- editor
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