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Karnataka Grape Board, the recommendatory body has sent
the proposal for implementation. It is with the law department now and
should become a policy within the next 15 days or so. The existing taxes
on imported wines at around Rs. 70 a bottle are some of the lowest in
the country. The total taxes including sales tax and excise will become
Rs. 225 a bottle of 750 mL.
There have been strong moves to impose reciprocal duties
from out-of-state wineries which would affect all the 48 wineries in Maharashtra.
Worst to hit would be Sula and Indage. But the common sense and the balance
and maturity has prevailed like the La Reserve from Grover Vineyards in
the state.
In a chat with DelWine, Dr. B. Krishna, Managing Director
of Karnataka Grape Board, confirming that the policy has now been cleared
by the legal department and would become a law within a month, says,'
our policy has to be fair for all Indian wines and not only Karnataka.
After all we are Indians first.' The proposal is awaiting the final seal
of approval by the Chief Secretary of the state, Mr. Sudhakar Rao who
is also the chairman of the Board.
This should be a sign of relief for the Maharashtra
producers who have been fearing the retaliatory move by Karnataka and
privately admit it would be a fair and befitting answer to the unfair
Maharashtra policy.
Kapil Grover knows the 'what if…' scenario painfully
well. His wines have been suffering not only the heat and dust of the
unlimited roadside Maharashtra wine shops without proper storage, but
also extra Rs.150 a bottle- the amount Maharashtra levies on the manufacturing
cost @150%. 'It would be shameful if we retaliated. Wine is supposed to
unite people and not create a divide between peoples which this policy
would surely propagate.
Although the increase will affect his partner-in-wine,
Brindco whose sales of imported wines will affected, Aman Dhall is unfazed.
After the rape by Maharashtra and soon in Delhi, the pain would be less,
he claims in private. Eventually, it is the customer who will suffer,
in any case.
On the western front the things seem to be moving slowly
towards the peace making. Rajeev Samant, Director of Sula Vineyards has
informed DelWine that they (Nashik wine producers association) have made
a representation to the Maharashtra Excise department to remove the K
form requirement- the payment of this extra duty. 'We surely are fighting
for a fair play. But we don't want the wineries from other states to suffer.
It is unfair for them to pay the extra excise and the Maharashtra government
has given us positive vibes.'
Abhay Kewadkar, Vice President of the wine Division of
UB, who has legs in both the states but more in Maharashtra agrees with
Samant. He says, 'we do not want to push the retaliatory policy in Karnataka
but would like the Maharashtra government to be fair to out-of-state-wineries.'
With the proximity of UB group lord Vijay Mallya with the man of influence,
Mr. Sharat Pawar, this should be doable-in the interest of national unity
which should have a higher priority than self interests.
Ab Dilli Door Nahin
Delhi is getting closer to make its excise policy of
25% excise on MRP a stark reality. The cabinet has cleared the bill and
it is now ready to become a law, unless someone at the level of Mrs. Sonia
Gandhi takes a personal interest, DelWine has learnt.
'A group of restaurateurs plan to meet the chief minister,
Mrs. Dikshit on Monday,' says a dejected and frustrated chef- partner
of Diva Restaurant. Comments A D Singh, Director of Olive Beach in Delhi,'
it is ironic that we are in Mumbai, Delhi and Bangalore and all three
states have negative news for us and our patrons.' Like Diva, they will
be forced to cut down on the wine list-taking us back to the pre-200405
when these people started going all out to promote wine as a food and
culture and lifestyle statement.
A lot of wine-manthan is in progress. We hope
the industry does not go the BSE Sensex way and some sense and stability
appears soon.
Subhash Arora
March 7, 2008
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