France to invest on destroying surplus wine

The French government has announced that 216 million USD would be channelised by it to fund the destruction of surplus wine production with an objective to support struggling wine producers in France, and bring about an increase in their wine prices.

According to a farmers’ association, decline in demand for wine leading to its over production, plummeting of wine prices and major financial problems have plagued as many as one in three wine makers in the Bordeaux region of France

The southwest Languedoc region, which is France’s largest wine area, and is renowned for its full-bodied red wines, has also suffered due to fall in wine demand.

Besides the long-term trend of wine consumers switching to beers and other alcoholic beverages, the Covid crisis gave a jolt to France’s wine industry. Recent rise in prices of food and fuel have also induced consumers to reduce spending on non-essential products such as wine, in France and in some other European countries.