ALL INDIA WINE PRODUCERS ASSOCIATION

Regd. No. 1358 /1996: Regd. Office: Indage House, Worli, Mumbai - 400 018.

Correspondence Address: 7, Prince Tower, Tidke Colony, Near Kute Eye Hospital, Nashik 422002, Maharashtra, India. Telfax 91 253 - 2310612 www.allindiawine.com Email ID: info@allindiawine.com

 Date: 12.05.2011

To,

The Commissioner,

Excise, Entertainment @ Luxury Taxes,

Government of NCT of Delhi,

L-Block, Vikas Bhavan,

I. P. Estate, New Delhi – 110002.

Sub: Delhi State Excise Policy for Wine 2011-2012.

Ref: 1: Our meeting held on 15^th March 2011 in presence of Hon. Shri. Sharad Pawar, Minister for Agree and MOFPI, GOI at New Delhi.

         2: AIWPA meeting with you and Shri Mishra Saheb, Collector, Excise at your office dated 16^th March 2011.

  

BACKGROUND:

Keeping the Grape Grower in view as the main beneficiary, Government of Maharashtra created a Wine Policy in 2001 and Govt. Of Karnataka in 2007, which would bring value addition to a perishable crop like grape and the Grape Growers will get remunerative prices for their grape production.  At the same time, the wine industry will prosper and create employment generation in rural areas. Also it promotes health drink hobbit in society and prevents to consume hard liquor. This Wine Policy offers excise holidays and other concessions for the wines produced in Maharashtra and Karnataka state. Other states of the country following the Maharashtra and Karnataka state grape policy.

 

State Government is promoting this industry to achieve following Objectives.

—  Agro - Based Industry.

—  Value Addition to Agri.- produce.

—  Food Processing Industry which converts highly perishable grapes in to non-perishable.

—  Major rural employment generating tool for unskilled labours.

—  Food based (part of food) alcoholic beverage.

—  Tiny Industry which encourage first generation entrepreneurs amongst the farmers.

—  Promote Agro-Tourism.

—  Overall Rural Development

—  Health drinks habit in society and prevents to consume hard liquor.

There are huge entry barriers for the wines in most of the states of India, and treating this product as liquor.

We suggested some changes to withdraw the entry barriers for small producers to sale Indian Wines in New Delhi.

Accordingly, We acknowledge here the efforts and moral support given by you in helping the Indian Wine industry to make Delhi Excise wine policy quite

liberal and this will be of immense help to small wine producers struggling for the survival along with grape growers. Now the entry point barriers for the

small and medium entrepreneurs in the state of Delhi have been removed and now they can take the opportunity to market their wines in Delhi.

It wouldn’t have happened without your strong support & timely valuable help at all the times, we with all the humility convey our sincere gratitude towards you through this letter.

Thanks you a lot to all your team who consider our appeal and make the policy quite liberal than previous!!!!

We have gone through New Delhi Excise policy, following are the things what we understood, plz make us correct if we are wrong.

1) L-1 license fee - (Company Registration) becomes Nil now against Rs. 5 Lacs.

2) Brand Registration - It increased from Rs. 50000.00 to Rs. 1 Lac per brand or 1% of the total wholesale value whichever is higher but Max. up to Rs. 10 Lacs in any case.

 

By paying Rs. 300000.00, can we do 10 brands???.

 

If brand Name is Sula, and they have three vertial of Sula Brand like Sula-shiraj, Sula-cabernet and Sula-chenin, so will you charge rs. 100000.00 for this brand or Rs. 300000.00??? for the three verital wines. Pl. clarify???

 

(We  made appeal to Excise Department Delhi that they should consider different varietal as a separate label and not as a separate brand and the decision is not clear to us.  Pl. confirm)

 

3) Label Registration for Different sizes - Such as 1000ml, 750ml, 375ml, 180ml, Rs. 5000/- per size or per label.

4) EMD - Just Rs. 25000/- per brand or only Rs. 25000 instead of Rs. 2,00,000/-

5) Bonded Warehouse - Rs. 50,000/- instead of Rs. 10,000/-. 

6) Duty Structure - What is the Duty structure for Domestic Wines???.

7) Bag in Box - Will be allowed in 1, 2, 3 & 5 Ltrs. pack ????

8) Policy for Imported Wine - L-1 Fees Rs. 6 Lacs,/ Duty Structure/EMD/Brand Fee/Lable Registration/Warehouse fee/

 

 

9) Total Expenses for domestic wines to luanch 2 brands/4 brands/10 brands/15 brands of wines.

10) Toatl Expences for imported wines to luanch 2 brands/4 brands/10 brands/15 brands.

Our representative Mr. Ankush Mittal will come to you to understand the above new policy and will make our doubts clear, so we can circulate the same to all our wine producers.

We will personnely come to Delhi to Thanks you in comming time.

Thanking You!

With Regards,

Jagdish Holkar,                                                                                                                        Rajesh Jadhav

President                                                                                                                                    Secretary

All India Wine Producers Association                                                                            09422271528                               

Mob. No. 9850044755                                                                                                           

Email: info@allindiawine.com, jagdish.holkar@gmail.com

1. L-1 License Fees - As understood, it is now Nil
2. Brand Registration - If winery wants to Register 10 bands cost will be Rs. 10,00,000/- 
   If winery wants to register 4 brands, cost will be Rs. 4,00,000/-
   Reason for this was that Association was asking the entry of Indian Wine into Delhi market to be possible easily, therefore they implemented this so that one can market 4 - 5 different brands.
   
   
   Point of different Varieties to be considered as one brand not taken into account for this excise year, Mr. Mishra has pointed out that wineries should first make presence in Delhi Market with this opportunity and then ask for further policy change.
   
3. Label Registration  - Rs. 5,000/- per label per size, i.e. for different sizes additional Rs. 5,000/- will have to be paid for each size and each brand.
4. EMD - Rs. 25,000/- Per Brand
5. Bonded Warehouse Registration - Rs. 50,000/- per winery has to be taken. Multiple Wineries can appoint one agent to handle Warehousing for them in a designated area. But, the registration has to be done separately for each winery @ Rs. 50,000/- each. 
6. Duty Structure - Not yet finalized, most likely somewhere in 45% of wholesale price. Can be up or down.
7. Bag in Box - Allowed
8. Policy for Imported Wine - Rs. 6 Lacs per company, Duty Structure not yet finalized, but will be more than Domestic wine.