India is heading for a shortage of both locally produced as well as imported wines. Let's take the case of domestic wines first. Wine has been produced in India since 1986 (Indage), and pioneers Grover (1992) and Sula (1999) expanded the number and quality of wines available. However, the industry only really got going in 2001 with the Maharashtra Grape Processing Policy which liberalised both licencing (to produce wine) as well as taxes on wines produced within the state.
While well-conceived, an unfortunate side-effect of this policy was that a number of grape farmers set up wineries in Maharashtra without knowing much, either about making or marketing wine. This resulted in a glut, with many poor-quality wines entering the market and leading to '1:1' schemes in a desperate attempt to sell.
The fiscal downturn of 2008-09 also affected wine consumption, and by 2010 there were 30 million litres of unsold wine lying with producers in Maharashtra. Consequently something like 50 of the 70-odd wineries there either lay dormant or shut down, and many grape farmers uprooted their vineyards and took to producing other crops.
Today the unsold wine has either been distilled or sold off. As demand for wine continues to grow and new vineyards take at least three years to start producing half-way decent grapes, it is estimated that by 2015, there may be insufficient quality wine grapes to meet the requirement of producers - and that this situation will persist for at least another two years.
Now, on to imported wines. Till last year anyone could get an import-export code and import wines from overseas under an Open General Licence. Since April this year, all importers have to comply with labelling requirements laid down by FSSAI, or the Food Safety and Standards Authority of India, which mandates that all ingredients used in the production of a beverage must be printed on labels. A product also requires testing in 'approved labs'.
Consequently, hundreds of containers have been stuck at ports and ICD Delhi awaiting FSSAI approval, and it is reported that rejections have been due to the flimsiest of reasons. Many small wineries will not be able to change their labels to meet the new regulations and will stop shipments. Many importers, too, will not be able to bear the additional cost of testing - imagine testing a Chateau Latour that costs over Rs 1 lakh per bottle - and will close shop.
The result: an unprecedented reduction in the number of imported wine labels available to consumers. Besides, there will be physical shortages this year-end as approvals and port clearances are unlikely to keep pace with demand.
You have been forewarned!
Wines I've been drinking: Two delightful Argentinean Malbecs from the Mendoza Valley- the Dominio del Plata Crios and Dominio del Plata BenMarco, quaffed in the company of importer Vishal Kadakia at chef Manu Chandra's Fatty Bao restaurant.
Malbec is the signature grape of Argentina, and Dominio del Plata is a 15-year-old winery set up by Susana Balbo, nuclear physicist-turned-winemaker (35 years ago, she was the first woman winemaker in South America). The wines themselves are simply terrific, with complex fruit aromas and a full-bodied but soft taste that lingers, with the BenMarco being a reserve (matured in oak for 11 months) and superior wine.
Salud, as they say in Argentina.
Alok Chandra is a Bangalore-based wine consultant
