With the tenure of the India Grape Processing Board expiring in February 2015, the Pune-based organisation has sought continuity of the organisation and financial support from the Centre.
The board was set up under the ministry of food processing industries in 2009 . While former agriculture minister Sharad Pawar had given the board a green light for continuation, the Planning Commission rejected the move. The commission also rejected the demand for allocation of Rs 30 crore under the 12th Plan sought by the board. ?The board, therefore, decided to meet Harsimrat Kaur Badal, Union minister for food processing on this issue and she has agreed to place this before the Cabinet,” said Jagdish Holkar, the board chairman. “Wine boards in European countries have been functioning for several years and are still receiving support from their governments. The wine industry in the country is still emerging and, therefore, support will be required for a few more years,” he said.
The board has also sought a level-playing field for the Indian wine industry and has suggested a framework on import duties to protect Indian wines. The National Meat and Poultry Processing Board, which was also established in 2009, comes up for renewal of its term along with IGPB.
The Grape Board has been seeking an integrated national wine policy to promote the industry. Holkar had urged the minister to take the initiative to rationalise the duties, take a call on taxation on wines and raisins and a uniform tax structure for wine across the country. The total size of the Indian wine market is approximately 14 lakh cases. Holkar along with members of the board had met the minister in Delhi a couple of times and said she was positive that the board should continue. Since the issue cannot be taken back to the Planning Commission, it will now have to be placed before the Cabinet, he explained.
The board chairman had also met the Director General of Foreign Trade (DGFT) and demanded a support for the Indian wine sector saying that there should be no unfair competition with imported wines. Although import duties on foreign wines and spirits are a minimum of 152% in India, Holkar said that hoteliers bring wines into the country under special schemes which allotted to them. Five-star hotels also have the provision to buy imported alcohol duty free. Between 30 and 50% of imported wine is actually free of the central duty so when it comes to selling to hotels, the industry does not have any advantage at all. Holkar said he along with Rajeev Samant, founder of Sula Wines met senior officials of the DGFT suggesting a formula to tackle the issue.
The country?s grape cultivation has declined 58.33% in Nashik, the country’s main grape growing region. From 6,000 acre dedicated to cultivating various wine grape varieties four years ago, the area has come down to 2,500 acre with most wineries too cash-strapped to sell their stock and, hence, wary of fresh crushing.