The Indian Grape Processing Board (IGPB), a board set up under the ministry of food processing industries, has approached the Centre to consider a slab-based duty structure to safeguard the Indian wine industry and prevent any possible dumping of European wines into the country, Jagdish Holkar, chairman, IGPB, said.
The move comes in the wake of an ongoing bilateral trade dialogue between a committee headed by Prime Minister Manmohan Singh, Union finance minister P Chidambaram and Union minister for commerce & industry Anand Sharma with the Trade Group of the European Union. ?The dialogue for bilateral trade is meant to encourage more trade between India and the European Union and will also give India access to 27 countries in Europe. However, EU has sought a reduction in the duty structure from the existing 150% to 40% to push more European wines into our country. EU is looking at India as a huge captive market. But this could damage our wine industry even before it begins to flourish,? Holkar said.
Holkar was recently in Washington representing IGPB, that had been invited by the World Wine Trade Group (WWTG) as an observer for the first time. At the meet, he approached senior members of WWTG saying that any move of this nature could prove to be harmful to the emerging wine industry in India. The members of WWTG have agreed to speak to the trade group of the EU, he said.
Dumping of bulk wines from Europe was a regular feature in the country around four to five years ago but since the imposition of the heavy duties, this has stopped, he said.
?We have suggested a slab-based duty structure to the government. For a bottle costing $3.70, the import duty should remain at 150% to safeguard our industry. For bottles priced between $3.70 to $7, a 100% duty has been suggested and for wines above $7, 40% duty could be imposed,? Holkar said.
Holkar said IGPB would be submitting a report on to the centre in the next 8-10 days suggesting that the Indian government should start a dialogue with WWTG for a membership for the Indian wine industry. ?WWTG has two kinds of membership ? industry membership and inter-governmental membership. Since this is a government related issue, it would be preferable to let the government talk on behalf of our industry,? he said. The report would also contain recommendations from his recent visit to Thailand, Washington and France
Holkar was in France to attend SITEVI ? an international exhibition dedicated to vine and wine, fruit and vegetable and olive-growing sectors ? and has suggested an agreement between the two countries for collaboration in technology and viticulture practices.
