- Indian wine production laws
- Types of Wines
- Production Of Wine In India
- Other Wineries:
- Wine production laws in India
- Customs Duty / Excise Duty
- Local Taxes
- Brand/Label Registration as per wine production laws
- Transport Permits as per wine production laws
- FDA’s procedure for obtaining a License To Operate.
- Frequently Asked Questions
Indian wine production laws
There are many wine production laws in India. India is not customarily a wine-drinking nation. The production and consumption of wine in India are almost negligible when compared with various other countries because of restrictions in India and higher prices as compared to spirits like brandy and whiskey made in the country. In Maharashtra, there is Champagne Indage’s plant which signifies the production of wine on an organized scale in India. Commercial wine manufacturing is coming into existence in the1980s in India
The Indian wine industry has been constantly evolving over the past 10 years. Wine is step by step turning into a part of the urban Indian way of life. The import taxes in the nation reduces and also empowering foreign exporters to exploit India’s huge consumer market. Also, The wine market is biting by bit opening up as quantitative limitations are being lifted, import duties are being brought down and domestic regulations are being untangled.
Types of Wines
There are 3 types of wines available in the country and these are:
There are 2 major categories falling under premium wines, these are red wine and white wine.
As per many consumers, this wine falls under the white wine category.
These are not considered as quality wines in India.
All the wines falling under the above categories are divided into 3 main categories:
Domestic Indian wine
This wine is produced using Indian grapes and packaged in India by Indian breweries.
Foreign bulk wine bottled in India
Some of the producers import wine in bulk and bottle it in India.
Foreign wine bottled in origin
In this category, more than 200 types of wine are available in India. These are imported by Domestic players, Importers, and Foreign players.
Production Of Wine In India
India has 123,000 acres of vineyards, of which only 1% are utilized for wine production. There were only 6 working wineries when India‘s first winery was set up in the 1980s and 2000. Although, manufacturing is consequently expanded rapidly. It is cresting at approximately 13.0 million liters (1.4 million cases) in 2010 and preceding dropping in 2011 and 2012. There are many wine production laws.
The following are wine companies are presently manufacturing/producing wines in India-
- Chateau Indage Limited, Pune: Chateau is the largest wine producer in India (both by volume as well as valuation). It is the pioneer of the wine industry in India which launched the sparkling wine Marquise de Pompadour in 1986, Riviera. They were also the first to make ‘Bottled in India’ wines which has since been discontinued.
- Sula Vineyards, Nasik: This is the only company that deals with all price and product segments of the wine industry. They first formed the market in grape varietals such as Chenin blanc, Sauvignon blanc, Riesling, and Zinfandel to India. As per the survey of 2013, they held 70% of India’s wine market share. Sula Vineyards is marketing-savvy in nature.
- Grover Vineyards Limited, Bangalore: This company was set up near Bangalore in 1989 after the promoters of the company tested soil and climatic conditions in other locations like Maharashtra but settled on the north of Bangalore. They launched their first wines in 1992 and since then their main motto is to deliver good quality wine to the users.
- Girona Valley Wine Yard
- Indogrape WineryKalyani Wines and Beverages
- Maharaja Winery
- Mohini Wineries
- Sahayadri Hills Vineyards
- Shivprasad Wines
- Bosca (Baramati grape industries)
- Bluestar winery
- Dajeebah wines (data cone wine industry)
- N.C. Fine wines
- Prathmesh wines
- Princess (in-vogue creations)
- Pyramid wines
- Rajdheer wines
- Sailo wines
- Sai Kripa winery
- Shaw Wallace
- Vinbros & Co
Although, there are no official production statistics state excise information with industry estimates gives a genuinely dependable sign of recent manufacture/wine production levels. Production was 641,000 liters in the financial year 2010/11 and 233,000 liters in the financial year 2011/12. During the Indian fiscal year 2010-11, excise data shows that the Karnataka state manufactured 2.9 million liters and Sangli (Maharashtra) shows 3.2 million liters during the financial year 2011-12. According to the Industry survey, the total wine manufacturing is approximately 11.5 million liters in 2012.
Wine production laws in India
Customs Duty / Excise Duty
- It has been expanded from 100% to the most extreme reasonable rate of 150%.
- India rejected extra excise duty on imported wine and other products. By the following objections of the European Union and the US in the World Trade Organization. So the customs duty has been waived on wine.
- In 2007, the instruction or education cess applicable to the imports of wine has been rejected.
- The Central Government of India has witnessed the most extreme state excise in different states which is 25%.
- The rate of Import expense for imported wine is Rs.2 for every mass liter in Kerela. Maharashtra has expelled excise duty on wine.
- Haryana has lessened the excise duty for wine to Rs.20.50 liter from Rs.32.25 liter per proof liter. Not only this, it has decreased the export duty to half for the domestic business.
Alcohol and alcoholic products would be taxed at 18% GST rate.
Licensing procedures differ state by state. Few states do not allow the sale of liquor. On the other hand, some prohibit the sale of liquor beverages and others have state-run restraining infrastructures that control the distribution of liquor. In general, individuals must have a license to deal with liquor beverages. In some states, licenses are further described to take into consideration things like room service sales of liquor. Licenses are renewed every year and state permitting and distribution structures are depicted in the Table.
Brand/Label Registration as per wine production laws
Distributors and importers are mandatory to register themselves and in some cases, label the brand with the state excise department for showcasing the label in the state. The state office charges a fixed registration expense and registration should be renewed each year. In a few states, importers are too required to mention the MRP for the wine at the time of registration.
The state excise office gives guidelines and standards on specific labeling prerequisites for sale at the time of registration. These labeling guidelines may include:
- Available to be purchased in the state of “___” as it were’.
- ‘Liquor Consumption is Injurious to Health’ in English
- Maximum Retail Price (MRP) Rs. “__” only.
- In addition to this, alcoholic beverage bottles will come with a warning on their labels such as “Be safe, don’t drink and drive”. This is in addition to the existing warning “Alcohol is injurious to health.”
- Furthermore, each alcoholic beverage needs to list all the ingredients used on their label, in Devnagri or English.
- Each product also requires testing in ‘approved labs’ prior to selling in the market.
Every domestic winery needs to comply with the following rules as per the FSSAI rules.
Transport Permits as per wine production laws
According to wine production laws, subsequent to accepting an order from a licensed purchaser/buyer, the licensed merchant/distributor applies for a transport license from the excise office. Therefore, License and permits are normally issued after payment of sales charge (VAT), state excise tax, and other pertinent taxes.
FDA’s procedure for obtaining a License To Operate.
According to the new Food Safety Standards Act, the wine goes under the food category. As there are worries over quality, they are intending to make licenses compulsory for wineries and wine retailers (shops).
Frequently Asked Questions
• When and where businesses can sell alcohol
• The quantity of alcohol being sold at a time
• The alcohol charges allotted by businesses
• The type of alcoholic beverages sold
• To who alcohol can be sold
• Businesses permitted to manufacture and distribute alcohol
• Each state has a specific Alcoholic Beverage Control (ABC) agency which regulates all these states and distribution of liquor.
• In some states/towns, there’s a separate place that limits the number of places that can sell liquor.
• Premises Address Proof
• NOC from the fire department
• NOC from the municipal corporation
• Application with business details
• List of Directors for companies
• MOA and AOA if the applicant is a company
• Copy of Latest IT return
• Photograph of an authorized person