Wine set to lose heavily after ban

The wine industry, especially at the hub in Nashik, is likely to take a huge hit after the closure of licensed liquor outlets along the highways. Maharashtra and Nashik hold a lion’s share in wine production and distribution in the country.

The All India Wine Producers’ Association (AIWPA) estimates that the impact on the sale of wine due to closure of liquor shops, bars and other licenced outlets within 500 metre from highways will be Rs 120 crore.

Liquor shops, bars and other licenced outlets within 500 metre from the highways are closed from April 1. The association members claimed that the overall sales of wine will be affected up to 20% across the country annually.

The annual wine sale in the country is close to 1.40 crore litres worth Rs 550 crore. Wine producers from Nashik supply 80% of the total wine sold in the country, which is about 1.15 crore litres worth Rs 450 crore. The 20% drop in sale may cause losses worth Rs 120 crore to the wine industry.

“In Nashik, known as the wine capital of the country, the loss would be greater since majority of the liquor shops and permit rooms are located near the highways. The wine sale in the district is expected to go down by up to 40%. Around 70% of the licensed outlets have been affected in Nashik district, the sources said.

The wine consumption in Nashik district is close to 5 lakh litres annually. Around 40% drop may affect the wine sale by 2 lakh litres annually.

There are total 95 wineries in the country, including 77 in Maharashtra. Of which, 39 are in Nashik. Maharashtra accounts for almost 90% of the total grape-wine production in India, while Nashik contributes 80%.

In 2015-16, the wine sale in the country was recorded at 1.40 crore litres, against 1.15 crore litres during 2014-15.