While it is all good news on one side, there is a certain amount of uneasiness amongst the local producers.

India's liquor industry is worried, especially the comparatively nascent wine producers, and for good reason. At the crux of the issue are India's complex laws dealing with production, distribution and sale of liquor. Will it be a level playing field for all? Will the authorities change or reframe the rules to ensure that a fair game is played by both sides, or will it be a repeat of the automotive scenario with perhaps only one or two dedicated wine makers fighting for survival with their backs to the wall against well ensconced new entrants jumping into the fray.

An almost virgin market like India's would be temptation for cheap wines to be imported in bulk and "dumped" at rock bottom prices on our consumers. We have always subconsciously accepted the superiority of most foreign goods over their domestic counterparts. While in the case of imported wines there are certainly very many greatly superior products, but there also exist the mundane less-than-average ones waiting to be imported in cheap bulk, finding a ready market for the "foren" crazy unknowing local consumer. Indage, Grover and the recent arrival Sula need to be protected for their quality, commitment and perseverance to the art. It would be a pity to see these pioneering efforts slain by the onslaught of cheap, low-quality wines imported in bulk. High on my wish list is the hope that these pioneers are encouraged by level playing conditions, emulating the indigenous development efforts of the lone automotive Pune-based pioneer in pitching their products against the onslaught of imported designs. I longfor the day when at least a dozen Indian wines find their way onto the shelves of wine stores in Western cities.

It is to be seen whether the government recognises this issue and acts on the same. One method may be to enforce a graded duty structure, with the maximum bound import duty of 150 per cent on cheaper imported wines of up to Rs 300 per bottle CIF value, being reduced to as little as 50 per cent on the more expensive ones in a three-tiered structure. The matter though is far more complex than this. While this structure would level the speed breakers for domestic producers at the Centre, how does one regulate the states with excise related levies differing from state to state. The WTO agreement has been signed by the Centre and not the states. Would international agreements signed by the Centre be binding on the states, especially when our constitution empowers the constituent states to decide individually on liquor issues. The Centre's willingness or capability to impose WTO guidelines on the states in this matter is a tricky issue and what emerges is being keenly watched by the entire liquor lobby-be it wine,beer or distilled spirits. Domestic producers currently pay registration fee for company as well as for the label or brand. Whether these states enforce similar levies on imports is to be seen. I cannot foresee a bottle of Chivas or a Stonehedge Chardonnay from California being custom labeled `for sale in Karnataka only' with the additional requirement of this message printed on the label in the local script. Would foreign brands be willing to conform to such labelling requirements and pay such state levies in addition to Central levies. More importantly, one hopes the state governments subject imported labels and companies to the same levies and label statements as Indian ones without exception. Of course, the best course would be to have a Central liquor policy binding on all states.

With so many weighty issues on their plate, the need of the hour is for bureaucrats at the Centre and in states to collectively and swiftly get their act together in formulating a win-win liquor policy. The ultimate emerging winner would, of course, be the consumer, paying commensurate value for quality and a variety of brands to choose from. Cheers to good times ahead for all.