Centre may allow wine sales at departmental stores

The Centre may allow departmental stores to sell wines after they obtain licenses from their respective state governments. “We are working towards easing regulations on wine production and consumption in India. Wine availability will be the first step in this direction. The government is willing to spread the wine culture amongst people and promote vineyards in the country,” said an official from the food processing ministry.

Some states, such as Delhi, Maharashtra, Karnataka and Punjab, have already allowed departmental stores to sell beer provided they procure a liquor license. In Maharashtra, stores are allowed to sell wine, in order to promote the state’s growing wine.

The Ministry of Food Processing Industries, along with the Department of Commerce is of the view that wine should be treated like beer, which is different from hard liquor such as whisky and rum. The central government’s two arms are working on a policy to encourage wine making and its consumption in the country. They are also in favour of a uniform excise duty regime across the states for the wine sector. Excise duty is a state subject and varies from state to state.

To give wine production and its promotion a boost, the food processing ministry has set up a National Wine Board to develop standards and promote the domestic wine industry so that it can withstand stiff competition from international brands. Competition from foreign wines is expected to intensify with the recent reduction in customs duties on imported wines and spirits as per WTO requirements. India's wine market, which is 1.2 million cases, has been growing at 40 per cent in 2008, as compared to 2007.