Manufacturing of a 330 ml bottle of fruit wine would previously attract an excise duty of Rs 30 to Rs 40, but now, this has come down to just 33 paisa. (Representational Image)WINE LOVERS in Maharashtra will soon have a wider range of options, with the state government announcing excise duty exemptions for fruit-based and mead (honey) wines on Wednesday.
While wines made from fruits such as mango, jamun, cashew apple, berries, chikoo, strawberry and jackfruit and honey were earlier paying 100 per cent of the manufacturing cost as excise duty, this has now been almost entirely waived, with the government saying that such brews will now have to pay just Rs 1 per bulk litre.
Manufacturing of a 330 ml bottle of fruit wine would previously attract an excise duty of Rs 30 to Rs 40, but now, this has come down to just 33 paisa.
In 2017, the state government had first extended the definition of wine to also cover brews made from fruits other than grapes, flowers and honey. But manufacturers had approached the government, complaining that the high excise duty made it difficult for them to penetrate the market. Admitting this, a senior official pointed out that in the last two years, only four production units in the fruit-based and mead varieties have come up in the state.
In Maharashtra, the average annual consumption of wines is about 70 lakh bulk litres. Almost 99 per cent of this is controlled by grape-based varieties. With fruit wines trending across the world, Maharashtra, too, wants to promote growth in the sector, said an official. Wines made from grape varieties are already exempted from excise levy since 2001. This tax holiday will continue at least till December, 2021. Recently, the government had also exempted blended grape-based wines from excise payments.
Announcing the move, state Excise Minister Chandrasekhar Bawankule claimed it will benefit fruit and honey farmers, who are often forced to discard surplus fruit. The Konkan region, which is known for its mango, chikoo and jackfruit cultivation, will benefit the most from the move, he said.
BJP MLA Parag Alavani, who had been pushing the case of incentives to promote the industry, claimed the government’s move will lend a welcome boost to the rural economy. Wine manufactures, too, have welcomed the move.
Priyanka Save, Director of Hill Zill Winery, predicted that the government’s move will see many more production units in the state. The Dahanu-based winery is famous for brewing India’s first chikoo based wine, Fruzzante, which is a cider-style beverage. Apart from the chikoo cider-wine, the firm also manufactures other variants in the vegan beverage range, including pineapple, mango, strawberry and starfruit.
“As Indians travel more and more, the interest and awareness about cider-styled beverages is increasing, and popularity of fruit-based wine varieties has been rising. We have also received many inquiries from people who want to set up such wineries. But…high excise duty meant the product was not in the affordable range, and lost potential consumers to the beer market. This has now been fixed to a large extent,” she said.
