Wine in Madhya Pradesh to get horticulture product status

Though investment in wine is increasing, MP is considering a proposal to give wine the status of 'General Processed Horticulture Product'.

The state government, according to the Wine Policy Draft, will allow wine production at a nominal fee of Rs 5,000 per year against the existing Rs 50,000.

The wine will be out of the 'Liquor, Spirit of Wine and Spirit of Foreign Liquor' list and will also be removed from the 'Excise Tax and Value Added Tax list.'

At present, wine attracts Rs 250 per proof litre. The new policy will be named 'Grape Processing Industry Policy 2006.'

The storage and retailing of wine will also be out of the purview of the Madhya Pradesh Excise Act, 1915, which may be amended soon to welcome wineries, mainly Champagne India.

In the draft policy, the department of Industries has proposed to keep wine out of the negative list of the State Industrial Promotion Policy and award it small-scale status.

In the past one year, Champagne Indage Ltd has reportedly shown interest in setting up a winery in the Ratlam area, the main wine quality grape-growing belt.

"SG Chowgule, chairman of the company, had urged the state government to introduce a wine policy so that the investment process can be shape," said a government source. The Wine Policy Draft will soon be cleared by the Project Implementation Clearance Board (PICB) in its next meeting and will be forwarded to the State Cabinet.

Wineries will also be allowed in Food Parks, which have failed to attract investment, on a nominal licence fee of Rs 5,000. Similarly retailing wine will be allowed in hotels, bars and beer bars on a licence fee of Rs 1,000 for 10 years.

All concessions available for food-processing units may be offered to wineries provided they process wine from home-grown grapes.

A trust will run a proposed institute to impart training in wine production, quality assessment, and research and function as an information centre for the wineries. Wine tourism will be encouraged to promote retailing. The labelling and branding will be allowed against a nominal fee of Rs 5,000 in lump sum.

A seven-member committee headed by the agriculture production commissioner and members from the departments of industries, tourism, and excise and the agriculture industries corporation will assist in setting up wineries and on related issues.