Protecting my vine patch

THE WINE CLUB

Many readers would be aware that Maharashtra's innovative wine policy of 2001 has resulted in some 40-odd wineries being established in that state to date, with a slew of new ones on the cards.

This has given us brands like Reveilo, Mandala, Renaissance, Vinsura, Bluefolds, ND, Nine Hills and Big Banyan, with others like Zinzi (from UB), Viva (Chateau D'Ori/ Ranjit Dhuru) and Zampa (Vallee du Vin/ Deepak Roy) in the process of being cranked out.

What is less well-known is how the "wine lobby" in that state has raised protectionist barriers to the entry of wines from outside the state, grossly increasing the prices for those wines, while enjoying unfettered access to markets outside their protected patch. A backlash now threatens to increase prices all round.

Customs duties of 150 per cent on wine should prevent the "dumping" of cheap wines from overseas, so one finds it totally inexplicable why Maharashtra recently imposed a further 200 per cent excise duty on imported wines "" this is before the 7 per cent octroi and 20 per cent VAT on all beverages sold in Mumbai.

With prices rising sharply, particularly for duty-free supplies to star hotels and select fine-dining restaurants, sales of imported wines in Mumbai have taken a huge beating since July 2007 and are down nearly 50 per cent as compared to 2006.

While wine importers are helpless, the newly-formed Karnataka Wine Board has mooted retaliatory measures on the higher taxes paid by Grover vineyards to sell in Maharashtra.

This is regrettable and undesirable. I've always maintained that two wrongs do not make a right "" that the way for Karnataka to address the issue would be to take up the matter at a government-to-government level and induce Maharashtra to rationalise their taxes on wines.

Imposing retaliatory taxes will mean that the big wineries will merely start another winery in both states "" and the ones who will lose out are smaller units and the consumer, whose choice will become more and more restricted.

India is attracting increasing international interest as a wine market because of the potential to grow into a significantly important size "" my own prediction is 10 million cases in 10 years, growing thereafter to 50 million cases in 20 years!

This could lead to investments ranging upto Rs 1,000 crore in production as well as marketing and distribution, but a sure way of killing the industry's potential is for each state to erect tariff and regulatory barriers that will raise prices and reduce choice to consumers.

Let's hope better sense prevails, and state authorities are able to transcend a myopic and short-term perspective and allow this nascent industry to grow and reach its fuller potential.

WINES I'VE BEEN DRINKING
I recently tasted wines from Agricola Querciabella: the Batar 2005 (87 points, Wine Spectator "" 65 per cent Chardonnay and 35 per cent Pinot Bianco) is perhaps the only white wine I know of that is said to keep for upto 25 years, with tremendous power and complexity; the Querciabella Chianti Classico 2005 (91 points/ Rs 2,500 in Bangalore) was aromatic, spicy and hugely enjoyable; the Querciabella Camartina 2004 (90 points, 50 per cent Sangiovese, 45 per cent Cabernet Sauvignon) was a huge wine, with velvety tannins and an unusual blackberry and tobacco nose.

al_chandra@vsnl.net