The only issue that both the segments agreed to was that there should be a base duty set at a particular price in order to avoid cheap imports and underinvoicing. This was also agreed only in principle and not in quantum.

Besides this there seemed to be no area of consensus between the two segments.

While UB group acted as the captain of the domestic sector, Bacardi and UDV stood up for the multinationals. A senior government official told The Financial Express, "there was nothing pathbreaking about the meeting except for the fact that all the players accepted the department secretary's suggestion to set up three separate task forces - one for each sector of the industry - wine, beer and spirits within the next one week." He said, the task force would have representatives from the respective industries and will make a list of the demands and problems of each sector before addressing it to the government.

Issues discussed at the meeting included delinking of wine and beer from spirits, export of Indian whiskey, implications of Quota-Restrictions removal and level paying field for the domestic producers.

The meeting turned into a clash of views between the domestic players and the MNCs, with the former accusing the latter of trying to damage the domestic companies' interests. The MNC on their part was of the opinion that the Indian companies were asking for too much of protection and not allowing quality products to come into the country under the pretext of damage. While the foreign players were confident that the government would have to bow down to WTO regime, the domestic players wanted the government to introduce restrictions by defining whiskey as molasses based and not grain based as prescribed by the European countries.

While the local players including UB, Grover Vineyards and Champagne India and All India Breweries Association (AIBA) pressed for delinking of these sectors from the main spirits, the foreign companies like Bacardi, UDV and Allied Domecq felt that it was not called for.

UB Group's spirits divisions' president Vijay Rekhi said, "we are asking the government to delink beer from hard liquor. We have asked for an excise duty based on the alcoholic content in the drink."

It is highly illogical to make a consumer pay the same amount of excise for a product which has 5-8 per cent alcohol and for a product that has 42 per cent alcohol"

Bacardi India's managing director Japayant Kapur was of the opinion that the government should not forget the spirits segment in an attempt to give a boost to the beer segment.