KARNATAKA WINE BOARD

(Govt. of Karnataka Undertaking)

Indra Priyadarshini Building, Cubbon Park, Bengaluru.

Opportunities for farmer and entrepreneurs from Karnataka Grape Wine Policy

            Karnataka is one of the important states growing different varieties of Grapes. Nandi Valley and Krishna Valley is considered as the important grape growing regions in Karnataka. Grape cultivation requires heavy investment of capital. In addition, to produce grapes of high Quality, the farmers have to put in hard efforts and additional investment. Nevertheless, the grape growers are always found to suffer from the variation in the price of grape in the Market and often fall into severe economic crisis. To overcome this problem, there is need for Value addition of the grapes and promotion grape products in both the local and international Markets. One such important product of grape is wine. In Karnataka, there are plenty of opportunities for production of wine. The climatic conditions in the state are best suited for the production of grapes suited for wine making. There is a very good demand for wines both in local and international markets.

            Compared to the other countries of the world, consumption of wine in India is minimum. In our country, the rate of wine consumption is growing at 25-30% per year. By providing congenial atmospher to the wine industry, giving up the thinking, that wine is an alcoholic beverage, and simplifying the taxation system, it is possible to boost the production and consumption of wine. By providing proper impetus to wine production and marketing, it is possible for the farmers to get good remuneration of their produce. Farmer is going to get good remuneration of their produce. Farmers are going to come out of market uncertainties, by linking grape production with processing. Since the export prospect for wine is huge, there is always an opportunity to get additional profit. With this background, there is a need for an integrated policy as related to production and marketing of wine in the state. Understanding the need for supporting wine production and marketing, the Government has declared a “Wine Policy” in the state.

            For implementation of various programmes and practices for the promotion of cultivation of wine grapes, wine industry, research, exhibitions, trade fairs, tours programmes and visits both within India and Abroad, sales of wine and market promotion, a fund of rupees 4 crore has been allotted to wine Board.

Karnataka Grape wine Board was established in November 2007. The board was renamed as Karnataka wine Board in the year 2008

The constitution of the board is as follows

:

PROGRESS OF WINE BOARD AS FOLLOWS;

         Simplification of rules while issuing license and Permit to the Wineries.

·         Simplification of rules while issuing license and Permit to the Wineries. The power of issuing license to the winery by Excise Commissioner have now been delegated to the Deputy commissioner(Revenue)

·         Winery license fee of Rs 5,000/-per annum will be charged. Earlier it was Rs.50,000/-

·         Categorized ‘Fortified Wine’ and ‘Wine’ differently.

·         Permission given to open Wine Taverns to sell the Wines separately.

·         The license fee for opening Wine Tavem is Rs.1000/- per annum.

·         Occasional license fee of Rs.1000/-per day will be charged to serve the Wines.

·         Levy of fee of Rs.300/-Per bulk litre is fixed for wine manufactured outside the state of Karnataka.

·         Additional special fee of Rs.300/- per bulk litre is fixed for wine manufactured outside India and imported into Karnataka

·         Permission given for consumer to retain wine up to 9 litres.

·         Bottling of Wine license fee of Rs 1000/- per annum will be charged. Earlier it was

                  Rs25000/-

·         Label approval and renewal license fee of Rs1000/-per annum will be charged.

·         at present the total area under grape wine cultivation in Karnataka is around 600 acres and the total grape wine production is around 16-18 Lakhs liters

·         License to open Wine Boutique with a minimum build-up floor area of 200 sqft of RCC and by paying a fees of Rs 5000/-

·         To open a wine Boutique in super market, mall, multiplex, etc the minimum space required at such locations cannot be less than 15000sqft. The license fee is Rs.5000/-

·         Wine industry as been declared as 'Horticulture and food processing Industries

·         Wine Board established its own building at Cubbon Park.

·         Wine board has participated in public event like the 'Flower Show' at Lalbagh and 'Fruit Mela at Hopcoms and educated more than a lakh visitor about wine.

·         The area under Grape wine cultivation in Karnataka was around 600 acres before The Wine Policy was introduced, at present it has increased to 1800 acres.

·         The total Grape Wine production was just around 16 to 18 lakh litres per year ,now it has touched 20 to 25 lakh litres after the new Wine policy was introduced

·          Karnataka state had only two wineries; Grover Vineyard in Dodballapur and Hampi Heritage in Bijapur. The new Wine Policy has helped the wine industry to set-up 9 new wineries in Karnataka after the establishment of the wine Board

·          Karnataka Government has granted 141.2 acres of land at Thoravi village at Bijapur to the wine Board for development of Wine Park.

·          Employment generation for the youths and farmers

·          It helps to promotes contract farming ·

·         It helps to get assured price and income.

·         Industry helps to process the products and it avoids spoilage

How Wine Industry is Growing

v  Wine industry is in a nascent stage in India. Estimates suggest an enormous growth potential of this sectors. Both the indigenous wine making industry and the wine market of India require equal attention for proper growth and expansion

v  India is recording strong growth in Wine consumption, mostly among younger people with good income in the main cities. The Market currently involves 1.6million families, threat in just a few years is expected to expand to 3millions

v  Wine consumption in India is still limited but the growth trend is impressive at a rate of 30% India appear to be hot on agenda of world’s best wine makers.

Advantages and Benefits of Growing Grapes

v  Grapevines becoming the most widely grown temperate fruit in the tropics. Currently world production is over 3million tons annually, with India producing more than a million tons.

v  Usually grape grown in the places where it is not possible for growing other crops while seeing the dry unfertile land of Bordeaux, France one would think that it is a land where growing cannot be done. But to our surprise, it is the place in which some of the best grapes and wine are produced

v  Grape cultivators will get assured buyers as the wine industry is growing day by day and the wine makers will purchase the yield

v  It is clear that tropical grape production is now a major world industry and the grape are able to be utilized for fresh eating, wine and raise in production

Total Wine sale in Karnataka (including forfeited Wine)

 In view of the above development, Karnataka Wine Board has conducted a Wine mela and Seminar at 10th July at Lalbagh

            The main idea behind this activity is to educated farmer and industrialist and to make the general public aware about wine cultivation production and contract farming and of the opportunities available in Karnataka. And also to make the farmers and entrepreneurs aware about the amendments made to excise and industrial rules. It is also organized to attract the investors by which we can improve contract farming and thereby ensuring assured income.

            For his event, more than lakh people visited. Farmers public, Industrialist and Journalist expressed their good opinion about this programme in this fest more than 800cases has been sold upcoming Wine Industry list has been enclosed in Annex I

Established wineries in Karnataka are as follows

            1. Grover Vineyards, Doddaballapur

            2. Hampi Heritage Winery, Bijiapur

From these wineries following brands are

            1. Grover

            2. Naka

           3.KinViha                                                                                                    

DR.B.Krishna
Managing Director                             
Karnataka Wine Board