Hyderabad: Wine makers have urged the Price Fixation Committee (PFC), constituted by the Telangana govt, to avoid any steep upward revision in wine prices, warning that higher levies on domestic wines could erode their competitiveness just as imported wines are set to become cheaper under the India-UK Free Trade Agreement (FTA).The industry has requested the PFC, which is expected to submit its report to the govt shortly, to exercise caution while revising basic prices of wine brands. It has also appealed to the govt not to impose Additional Excise Duty (AED) on domestic wines, arguing that any sharp increase in retail prices would narrow the price gap between domestic and imported wines.Under the India-UK FTA, customs duty on imported wines will come down from 150% to 75%, making overseas labels more affordable. If domestic wines are subjected to higher prices and additional taxes, consumers may increasingly shift to imported brands, industry representatives said.The industry has also sought a dedicated wine policy for Telangana, on the lines of Maharashtra and Karnataka, to promote wineries, wine tourism and grape cultivation. “Telangana needs a progressive, wine-friendly policy on par with Maharashtra and Karnataka to promote the growth of the wine industry, increase wine sales, boost wine tourism, and generate employment opportunities across the state,” said Jagadish Holkar, president of the All India Wine Association.Telangana sells nearly 85 lakh cases of IMFL and beer every month, while wine accounts for only about 25,000 cases, despite growing from around 2,000 cases two decades ago. Kishan Pedhapally, founder of Asav Vineyards and the association’s representative for Andhra Pradesh and Telangana, said wine should be treated differently from hard liquor as it is a naturally fermented agricultural product.“Telangana should consider a progressive policy that supports Indian wines through a favourable pricing framework for imported labels. Such a move would strengthen domestic wineries, support grape growers and help build a sustainable wine ecosystem in the state,” he said.
