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Wine Prices In India

Wine Prices In India News



Big brother not needed - Sify

Growth and development boomed in India following the liberalisation of industrial licensing in 1991, but since alcoholic beverages are a state subject and one of the principal sources of state revenue, there’s little sign of any liberalisation here.

In fact, as reported previously, since most government authorities do not differentiate between spirits and low-alcohol beverages like wine or beer, the trend has been to increase taxes on wines ("wines are consumed by affluent sections of society") and in general regard this product as a cash cow.

In states where a wine policy has enabled setting-up wineries (Maharashtra, Karnataka) the tendency is to protect the local industry (and tax wines from other states). Elsewhere in north India a winery has to incur massive annual costs to enter most states — and this is regardless of their sales volume. Small wonder that although there are over 60 wineries in Maharashtra, only a handful on new brands are sold in, say, Delhi.

One of the most insensitive state policies is practiced in AP, where the AP State Beverages Corporation (APBCL) is the canalising agency for all alcoholic beverage sales, whether produced in India or overseas. Not only does the state have the highest taxes on all alcoholic beverages (a VAT of per cent — no concession for beer or wine), the APBCL actually negotiates prices with vendors in the name of ‘protecting consumer interests’ and in doing so ultimately serves the interest of large producers (whose costs are lower and volumes higher).

Big brother not needed - Sify


Big brother not needed - Business Standard

Growth and development boomed in India following the liberalisation of industrial licensing in 1991, but since alcoholic beverages are a state subject and one of the principal sources of state revenue, there’s little sign of any liberalisation here.

In fact, as reported previously, since most government authorities do not differentiate between spirits and low-alcohol beverages like wine or beer, the trend has been to increase taxes on wines (“wines are consumed by affluent sections of society”) and in general regard this product as a cash cow.

In states where a wine policy has enabled setting-up wineries (Maharashtra, Karnataka) the tendency is to protect the local industry (and tax wines from other states). Elsewhere in north India a winery has to incur massive annual costs to enter most states — and this is regardless of their sales volume. Small wonder that although there are over 60 wineries in Maharashtra, only a handful on new brands are sold in, say, Delhi.

One of the most insensitive state policies is practiced in AP, where the AP State Beverages Corporation (APBCL) is the canalising agency for all alcoholic beverage sales, whether produced in India or overseas. Not only does the state have the highest taxes on all alcoholic beverages (a VAT of per cent — no concession for beer or wine), the APBCL actually negotiates prices with vendors in the name of ‘protecting consumer interests’ and in doing so ultimately serves the interest of large producers (whose costs are lower and volumes higher).

Big brother not needed - Business Standard


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Tag : Wine Prices In India

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