MP vintners may have to provide for official bungalow

Citing legalities, the officer class in Madhya Pradesh has asked for a furnished bungalow equipped with a modern office from vintners of a small village called Titri in Ratlam district. Under the Excise Act of 1915, all brewers have to provide an office and an inspection hut in their breweries in Madhya Pradesh.

Vintners today called on Chief Minister Shivraj Singh Chouhan on the issue and said their winery should be out of the excise ambit.

The state government had last year introduced the 'Grape Processing Industry Policy 2006' to bring wine-brewing out of the ambit of the Excise Act and award it food-processing industry status. Even retailing wine will not be permissible since the law prohibits it and the farmers can only auction it.

Two years ago, 15 grape-growers of the village decided to set up their winery called 'Patel Wine & Fruit Processing Industry' on the co-operative model.

"We have been told that according to a provision of the law, the winery will be duty-free but the other provisions of the Excise Act will be applicable. The excise officials have asked for a furnished office and a bungalow (inspection hut) for an excise officer who will monitor our activities. We are already under severe financial strain. How can we comply with their demands" a member of the company asked.

Speaking to BS, horticulture and food processing secretary SPS Parihar admitted that district excise officials had demanded an inspection hut but they had been instructed to remove all bottlenecks by using their discretionary powers, if it was not mandated in law.

"Food processing is a thrust sector in Madhya Pradesh and wine is now out of negative list and attracts zero excise duty. Issue like Inspection Hut is minor irritant unless they are mandated by law. If there is a slightest scope of discretion we will take a decision in favour of farmers. We are trying to remove all such bottlenecks so that this kind of enterprise can flourish and more and more jobs can be created particularly in rural areas," he said.

An inordinate delay in the winery project has already increased the input cost to Rs 1.60 crore against the estimated investment of Rs 1.03 crore.

The farmers have requested the state chief minister implement the new policy at par with that of Maharashtra.

The Titri vineyard is ready to feed the fermentation tanks that will brew 50000 litres per year, but the member farmers will not be allowed to sell wine directly to retailers.

"If we will have to sell our wine through government auction, we fear it will fail our project," the source said adding, "Maharashtra allows wine retailing at a nominal fee of Rs 5000."

The farmers grow Australian variety of wine quality grape namely Shiraj and Cabernet Blonc on an area of 20 acres of land. One of the members of the company has obtained a degree in winery from Bhartiya Vidya Bhawan, Pune.