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In the absence of release of any reliable data by the Indian authorities, only a query through RTI (Right To Information Act) could perhaps unveil the mystery of bulk importers, but the credible and creditable annual reports by Wine Australia (previously Australian Wine and Brandy Corporation- AWBC) during the past several years have been continuously indicative that there was a higher import of bulk wine than bottled wine.
Import of bulk wine is a good way of saving costs of winemaking and Australia offers a wide choice, as Chinese importers have discovered. The first winery in the state of Haryana called Nirvana Biosys, has even started manufacturing wine locally by importing the juice concentrate and fermenting in stainless steel tanks. To their credit, they proudly announce the fact and pay the excise and other duties as applicable by law.
Import of bulk wine is allowed on the payment of 150% customs duty of the c.i.f. value, same as bottled-in-origin (BIO) wines. However, Maharashtra has exempted excise duty for the state-produced wines but levies an exorbitant 150% special excise duty on domestic wine imported from other states like Karnataka. Their neighbouring state of Goa has no laws or disincentives against such practices. A small quantity of bulk wine is indeed imported there, but reportedly not from Australia.
The import of Australian bottled wine was estimated to be around 20,000 cases in 2010, a majority of it being the ubiquitous Jacobs Creek. Giving the benefit of higher exports of another 30%, making it to 26,000, about 40,000 cases (or equivalent thereof) seem to be unaccountable or inexplicable and can only be ascribed to bulk wine.
If not RTI, details by Wine Australia could possibly help Australian wine-watchers in India form a clearer picture. Interestingly, the volume of 599,558 liters imported, according to the release, claims 55% increase over the previous year which was a disastrous year for the Indian wine Industry due to the after effects of the 26/11 terrorist attack. Most importers reported a disastrous 2009-10 since the imported wine business had really opened up in 2001, when the government of India allowed free imports of wine, beer and spirits (but with duties at over 600%).
Aussie strategy to focus on the Chinese market when they hit a major road bump and recession about three years ago, seems to have paid off with the exports to China touching 55 million liters compared to the meagre 0.6 million liters to India. The increase in bottled and bulk wine to China has continued to grow strongly and there is nothing to suggest it will slow in the short-term, according to a spokesman of Wine Australia.
Chinese laws not only allow the import of bulk wine, but also allow the domestic industry to use a maximum of 85% in their production in order to classify it as a local wine.
Wine Australia report places the national wine exports to 781 million liters, up 2 per cent though there was a decline of 9 % in terms of value at A$2.1 billion.
For a related earlier article, read my Blog written two years ago:
Australian Wine Made in India
You may also find the following earlier articles interesting :
Australian Bulk Wine Exports Plummet
Australian Export Figures to India Puzzle
Subhash Arora |