MP govt mulls new wine policy

The state government's commerce & industries department is seriously considering bringing in a new wine policy. This follows the increasing interest of investors in the wine business.

As per the draft of the policy, wine will be removed from the list of the 'liquor, spirit of wine and spirit of foreign liquor' and will also be removed from the 'excise tax and value-added tax-list'.

Besides, the department proposes to award the small-scale industries status to wine and keep it away from the negative list of the State Industrial Promotional Policy.

According to highly-placed sources, wine will be given the status of 'General Processed Horticulture Product'. Under it, wine production will be allowed at a nominal rate of Rs 5,000 per year. Notably, at present, the rate is Rs. 50,000 a year. If this policy comes into force, both storage and the retailing of the wine will be beyond the purview of the MP Excise Act, 1915.

It will be amended in favour of investors willing to set up wineries in the state. Labelling and branding will be allowed at a nominal rate of about Rs 5,000. Moreover, wineries will be allowed at food parks that have so far failed to attract investment even at the nominal licence fee of Rs 5,000. Retailing of wine will be allowed in hotels, bars, beer bars and such other places for a licence fee of Rs 1,000 for a period of 10 years.

To pave way for setting up wineries on related issues, a seven-member committee headed by the agriculture commissioner and representatives of Industries, Tourism, Excise and Agriculture Department and other related departments and corporations will provide the necessary assistance.

The department proposes to set up a trust that will run an institution which will offer training in wine production, its quality assessment, research and others will be provided.

It will also act as an information centre for wineries. The state government hopes to encourage wine tourism to indirectly help in promote retailing.

When contacted, Babulal Gaur, MP's Minister of the Commerce and Industries Department told reporters that the aim of the new wine policy is to encourage production of wine in the State from grapes. He added, "Concessions would be made available to the food-processing units if they agree to produce wine from grape grown in the state."