This is how Telangana trying to kill domestic wine business
Defying all logic, Telangana government has imposed higher demurrage charges on domestic wines supplied to state corporation TSBCL, while it is soft for imported wines.
India’s majority of wine companies have submitted a representation to the Somesh Kumar, Principal Secretary, CT & Excise , Telangana government, highlighting the discrepancy and appealing for a rectification.
The representation is signed by Pedhapally Kishan, Owner of Asav wines and co-signed by the representatives of Noble Wines, SDU Winery, Grover Zampa Vineyards, Vijay Durga Amal Wineries Pvt Ltd, KRSMA wines, Vinbros & Company, Tonia Liquor Industries and Elite Wines. They have highlighted that the demurrages charged from Imported wines are being charged with mere Rs.5 , Rs.25 , Rs.50 slabs, while domestic ( Indian )manufactured wines are being charged Demurrages on percentage basis of 1.5 % , 6 % , 12 % on TSBCL Basic Price.
The representation argued that margins for Indian wine manufactures are less compared to that of liquor and beer to absorb the demurrage charged by TSBCL. “With a meager volume of sale of wines, we incur huge expenses in the form of Inter Depot Stock Transfer ( IDT ) to make our product available in all TSBCL so that our Brand should be made available in all wine stores,” it reasoned.
The wine companies also stated that wine, unlike spirits and beer, is not a fast moving product and it needs time and conduct extensive marketing activities to even get to liquidate the same from the retail or Institutional shelf and can’t be dumped at any point to just avoid demurrage Charges.
Seeking corrective steps from the government, the representation said that after the implementation of very high demurrage charges on percentage basis, for slow moving stocks in par with spirits and beer which has high volumes of sales is not supportive as far as wine sales are concerned.
The wine companies requested the government to reconsider demurrage charges imposed on domestic wines, so that all the domestic wine companies can continue business in Telangana Market. Also asked the government to re-examine the existing excise policy and devise a plan for Telangana Wineries for setting up more production of wine and increase Government Revenue.
Will there be any action from the government ? Nothing has been heard from Mantralaya so far !
