Wine parks, anyone?

THE WINE CLUB

It had been on the anvil forever, but the Karnataka Grape Processing and Wine Policy 2007, announced by government order (dated March 14, 2007) and circulated on April 17, 2007, addresses many of the issues of the industry. The key features of the policy are:

Setting up wineries will become easier and cheaper

Winery licences will be issued at the district level by deputy commissioners, and the fee for excise registration has been decreased from the present Rs 50,000 (annual) to Rs 5,000.

Land purchase for setting up vineyards will become easier.

There would be a slew of subsidies for setting up wineries.

Selling wines will become easier and cheaper

Wineries will be permitted to sell wine directly to visitors, and "wine tourism" will be encouraged.

Licences would be issued for the sale of wine (presumably in department stores too) at a nominal fee of Rs 5,000 per annum, and for consumption of wine in wine taverns at Rs 2,000 per annum.

Label registration fees on wines is being waived.

Excise duty on wine has been reduced significantly.

The policy envisages the setting up of a Grape Processing Industries Board, under the purview of the Department of Horticulture, to oversee implementation of the policy "" particularly with respect to grape cultivation and standards.

Lastly, the policy talks about setting up two "wine parks" in the Bangalore/Kolar area (Nandi Valley) and the Bijapur/Bagalkot/Belgaum area (Krishna Valley) to assist the smaller grape farmers with common infrastructure and facilities for wine production and bottling.

But before you rush to break out the bubbly, a few observations are in order:

The whole process still requires a series of executive orders to put flesh onto the policy's bones and make the various provisions implementable.

There will be efforts to dilute many policy pronouncements, particularly wherever these imply granting greater freedom "" after all, no department I know of has ever voluntarily relinquished control over their powers to say "yes" or "no"!

However, regardless of whether these policy pronouncements are translated into practice, and regardless of the desirability (or otherwise) of trying to set up "wine parks" (like an industrial product), what is important is that for the first time the state government has recognised wine as a beverage distinct from spirits or beer, and wine as an industry that is worth promoting.

This is a huge step forward, and so long as the policy does not result in a rash of protectionist measures (such as those Maharashtra has opted for) under the guise of "protecting the domestic industry", all stakeholders (the farmers, wine producers, government and consumers) will share in the benefits of having better wine at lower cost available more widely.

Surely, something to raise our collective wine glasses to.

al.chandra@gmail.com