Policy to help promote sale of ‘Made in UP' wines in retail stores soon

Time of India

a day ago

Lucknow: The state excise department is planning to make it mandatory for retailers to start stocking indigenous wines produced from fruits grown in UP on their shelves.
Acting on the representation forwarded by the vintners (winery owners and operators), the department will soon present the proposal before the state cabinet to amend the existing policy and rules to create a minimum quota to promote its retail trade.
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The four winery operators in Lucknow, Muzaffarnagar, Saharanpur, and Noida would benefit from the move, as would hundreds of local farmers within the catchment area.
Though provisions were made in the excise policy to start manufacturing wine from locally produced fruits in March 2022, the commercial operations of the wineries are yet to begin in the state.
"The idea behind introducing local wine was to help farmers generate increased income.
But until our products find space in the retail ecosystem, achieving financial viability will not be possible," said Muzaffarnagar-based Sanjay Gupta, who desperately wants to enter the retail market with five different local wines produced from mango, litchi, jamun, grapes, and mixed fruits for a year.
Since the UP govt decided not to impose excise duty on 'Made in UP' wines, retailers showed no interest in stocking the products in the stores.
"Every retailer has to provide a fixed income to the excise department through the liquor trade.
Called MGQ (minimum guarantee quota), it is mandatory for retailers to purchase a minimum quantity of liquor bottles in a month to assure a certain fixed revenue to the state," said a Lucknow-based retailer.
Over the sale of country liquor, English wine, and beer bottles, a hefty portion of the price is paid as excise duty to the state coffers, helping retailers achieve the MGQ.
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As the sale of local wine would not generate any excise duty for the state, retailers will not be able to achieve MGQ in return.
"That is why no retailer shows interest in stocking local wines and instead focuses on the products which have higher demand," the retailer added.
A senior excise officer said provisions need to be made in the existing policy to create a sub-quota within the MGQ to promote local wine.
Lucknow: The state excise department is planning to make it mandatory for retailers to start stocking indigenous wines produced from fruits grown in UP on their shelves.
Acting on the representation forwarded by the vintners (winery owners and operators), the department will soon present the proposal before the state cabinet to amend the existing policy and rules to create a minimum quota to promote its retail trade.
The four winery operators in Lucknow, Muzaffarnagar, Saharanpur, and Noida would benefit from the move, as would hundreds of local farmers within the catchment area.
Though provisions were made in the excise policy to start manufacturing wine from locally produced fruits in March 2022, the commercial operations of the wineries are yet to begin in the state.
"The idea behind introducing local wine was to help farmers generate increased income. But until our products find space in the retail ecosystem, achieving financial viability will not be possible," said Muzaffarnagar-based Sanjay Gupta, who desperately wants to enter the retail market with five different local wines produced from mango, litchi, jamun, grapes, and mixed fruits for a year.
Since the UP govt decided not to impose excise duty on 'Made in UP' wines, retailers showed no interest in stocking the products in the stores.
"Every retailer has to provide a fixed income to the excise department through the liquor trade.
Called MGQ (minimum guarantee quota), it is mandatory for retailers to purchase a minimum quantity of liquor bottles in a month to assure a certain fixed revenue to the state," said a Lucknow-based retailer.
Over the sale of country liquor, English wine, and beer bottles, a hefty portion of the price is paid as excise duty to the state coffers, helping retailers achieve the MGQ. As the sale of local wine would not generate any excise duty for the state, retailers will not be able to achieve MGQ in return.
"That is why no retailer shows interest in stocking local wines and instead focuses on the products which have higher demand," the retailer added.
A senior excise officer said provisions need to be made in the existing policy to create a sub-quota within the MGQ to promote local wine.