Plan seeks reduction in duty for imported wines.

PUNE: The Indian Grape Processing Board has submitted a proposal to the Union government seeking a three-slab reduction in import duty for imported wines, instead of directly cutting it down from 150% to 40%. The board has said the cut will result in more inflow of imported wines in the country causing a notional loss for the wine sector to the tune of Rs 5,000 crore.

The board will also submit another proposal to the Centre to discuss the possibility of the country becoming a member of international organisations like the World Wine Trade Group (WWTG) and the Asia-Pacific Economic Cooperation (APEC) to promote wine and encourage bilateral trade of wine with other countries along with removing trade barriers among other things.

Jagdish Holkar, chairman of the board, said he had raised the issue before the member countries of the WWTG, including the non-European Union (EU) countries, in a recent meeting in Washington DC so that the board could get global support.

"The Union government is in talks with the EU to bring down import duties to 40%, which is drastic. If the duties are directly brought down to 40%, then India will become a dumping ground for imported wine. Therefore, we are trying to exert pressure on the government to rethink its decision to reduce import duty keeping in mind the global platform," he said.

Holkar said membership of the WWTG and APEC will help the country facilitate exchange of information as well as develop expertise in removing trade barriers. "For instance, Thailand has high import duties of 300%-400% on wine, which makes it difficult to enter the market there. Also, bilateral trade in case of wine, which does not exist currently, can also become a possibility if India becomes a member of these organisations," he said.

Source : timesofindia.indiatimes.com