Wine produced in the state will now find footing in the lucrative Delhi market, as the exorbitant taxes hitherto imposed on Maharashtra's manufacturers have been slashed
Wine produced in the state will now find footing in the lucrative Delhi market, as the exorbitant taxes hitherto imposed on Maharashtra's manufacturers have been slashed
Wine manufacturers in Maharashtra and wine lovers in Delhi are heaving a collective sigh of relief. The state's collective wine surplus stock of 2.3 crore bulk litres will soon make its way to the capital state, and thereafter to the eager bellies of wine connoisseurs in Delhi, aching with anticipation.
The new policy will not only reduce exorbitant wine prices in Delhi, but will also help Maharashtra's wineries clear their existing surplus stock
This gigantic surplus quantity of wine has been idling time in tankers over the last two years, since the exorbitant sums charged as licensing fee and tax by the Delhi excise department prevented the state's wine manufacturers from floating their wines in the capital. But all that is now a thing of the past.
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In a gesture of goodwill, Delhi has welcomed the domestic wine makers of Maharashtra by curtailing the various fees, with effect from May 1. The state is a key producer of wine in the country.
According to the new government resolution issued by the Delhi excise department, a copy of which has been obtained by MiD DAY, the capital has slashed fees which it had hitherto imposed on Maharashtrian wine, preventing the state's brands from entering the competitive wine markets in Delhi.
The prohibitive sums that were imposed earlier would range from Rs 8 lakh to Rs 1.3 lakh.
"Till date, foreign wine brands were actually paying far less than what Indian wine manufacturers were paying, in Delhi.
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In a meeting held between Agriculture Minister Sharad Pawar, Delhi Chief Minister Sheila Dixit, and wine producers, Pawar was shocked to discover that the Indian government relegates wine produced within its own territory to the sidelines.
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Outraged by the step-motherly treatment received by the nation's wine producers he decided to veto the new move," said Rajesh Jadhav, vice president of the All India Wine Producers Association (AIWPA).
In high spirits
Jadhav revealed that the new policy, when implemented, would not only reduce exorbitant wine prices in Delhi, but would also help the state's wineries to clear its existing stock, since a fresh clientele would be acquired by the newly licenced brands in Delhi.
"We are happy that the capital has finally safeguarded the interests of the domestic vine grape harvesters and producers. Many small producers can smoothly enter and establish a clientele in the nation's capital.
The walloping surplus stock of 2.3 crore bulk litres, can now be transported to Delhi, where Indian brands have hitherto been scarcely available. We expect buoyant business in the future," he added.
Till date, only 24 Indian brands were available in Delhi, compared to the 1,000 foreign brands, owing to the rigid tax structure, although the capital, with its wide population of connoisseurs, was the largest wine consumer in the country.
Delhiites consume only 44,000 cases of Indian brands, compared to the 90,000 cases of foreign brands.
Jagdish Holkar, chairman of Flamingo Wines Company Pvt Ltd, echoed Jadhav's sentiments, adding, "This is a good move, since 80 per cent of the total wine consumption in India takes place in Delhi."
Surplus spirits
Stock (in litres) with wineries
2006-07: 66.3 lakh
2007-08: 10.5 lakh
2008-09: 15.2 lakh
2009-10: 2.53 crore
2010-2011: 2.30 crore
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Winning wineries
Nashik: 33
Sangli: 30
Pune and Buldhana: 2 each
Raigad: 1
Number Game
80%
Of the total wine consumption in India takes place in Delhi
24
Number of Indian wine brands available in Delhi
2.3 cr
Litres of state's collective wine surplus stock that will now make its way to Delhi
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