by Subhash Arora
 
The government of Maharashtra, India’s wine producing state, has reneged on recent assurances that it would decrease duties on imported wines and has significantly increased them instead, from 150% to 200%. While the result will be a boom for local producers, it’s also making fine wine lovers and those who serve them gloomy.

“Maharashtra hotels which consume 85% of the premium wines of the country will be the worst hit,” says Aman Dhall, owner of Brindco, the biggest wine importer. “It will be a big setback for the imported wine industry. It is totally arbitrary and the government does not appear to have applied its mind properly,” he added.

“The imported wine industry is finished,” said Sanjay Menon, Mumbai’s biggest importer. ''We were hoping that the government will see reason and reduce the excise duty , at least on the fine wines which are not even competing with the Indian wines.”

Rajeev Samant who has been a supporter of a fixed duty per bottle as in UK and Singapore is in Italy awas not available for comments. Sula and the other producers of Maharashtra will have now free run as there will be practically no competition from the quality wines.

Despite assurances and statements that it was considering decreasing the duties from 150% to Rs. 300 ($7.50/€5) a litre, the government increased it to 200% of the assessable value or Rs.200 ($5) per bulk liter whichever is higher, for wine either in bottle or bulk, through a gazette notification. Even more surprising is the announcement of a reduction of excise duty to 100% and even 75% for better quality spirits, costing upwards of Rs.5000 (€ 88 a case of 9 liters). This means the excise duty on Scotch whisky and other premium liquors will come down significantly.

The hotel industry will be adversely affected, bringing in a huge drop in sales and an unprecedented price increase for the consumers.