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Our Bureau

Pune, Jan. 19 Steep excise duty seems to have taken the fizz off the wine sales in Maharashtra.

Mr Abhay Kewadkar, Business Head (wines), UB Group, told presspersons that wine sales in Maharashtra and Karnataka have come to almost a standstill. He pointed to the recent hike in excise duty on per bulk litre to Rs 150/litre for inter-State movement. Mahrashtra had given excise duty relief for a 10-year period starting from 2001.

Following the excise duty increase, the wines, sold at about Rs 400 a litre earlier, were now being sold close to Rs 700.

The Government’s contention, he said, was that the benefit of the duty relief was not reaching the consumer or the farmer. He said Karnataka had also increased the excise duty by Rs 300.

Mr Kewadkar said the Indian Wine Makers Association has approached the courts to bring about a change in the policy.

He noted that unless there was a change in the policy soon, the wine industry in the country would face severe loss as the crushing season would be beginning in the next two weeks.

He said the manufacturers in Goa had also gone to the courts asking for ‘protection’ and it has also increased its price by close to Rs 50 a litre since the past three months.

Asked about the issuance of equity stake in its Baramati wine project, Mr Kewadkar said about 700 farmers had registered with the UB group and that the process of shortlisting the farmers was on.

He said it was looking to shortlist about 300 farmers and all pre-approved farmers would be issued the shares.

He said 51 per cent would be with the UB Group and the remaining 49 per cent would be offered to the farmers or the strategic partners.

Commenting on the UB Group’s plans, Mr Kewadkar said it would be looking at exports in 2009-10.

The focus would be on the four seasons brand and reserve range. It is estimating exports of about 20 per cent.

He said the wine spa, promoting tourism, would be ready in March 2009.

It would have 14 rooms including a wine merchandising room and wine tasting room.

More Stories on : Breweries | Excise and Customs | Maharashtra

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