Every decision we make comes with consequences. As per economics, it is all about tradeoffs. The classic example in the study of economics is that of the tradeoff between guns and butter. A similar kind of tradeoff is being done in the state of Maharashtra. For the sake of the economy, public wellbeing is being put out in cold.
Now in Maharashtra, wine will be available in Supermarkets as well
On Thursday, the state cabinet headed by Chief Minister Uddhav Thackeray approved the sale of wine in supermarkets or walk-in stores. After this decision, wineries will now be able to market their wines by selling them directly in supermarkets or in walk-in stores in a shelf-in-shop manner. The government is hoping that the decision will benefit small wineries and farmers in the state.
It should be noted that the government has mandated that these supermarkets and walk-in shops will be situated away from religious and educational institutions.
NCP Minister Nawab Malik strongly justified the cabinet decision. “The growth of the wine industry is important, as is a fair price to the farmers for their produce. The wine industry’s growth is also crucial for effective marketing. The wine can be sold from supermarkets or walk-in stores with a size of 100 sq m. In such supermarkets or shops, the wine will be sold through locked cupboards,” he said after the meeting.
The decision will help winemakers to broaden their retail footprint in Maharashtra. The government will charge per bulk litre a nominal excise duty of Rs 10 on all types of wine bottles. This will earn only Rs 5 crore in revenue for the state but will help the excise administration know the number of wine bottles sold in the market. The government has fixed an annual license fee of Rs 5,000 for the sample E-4 license.
Maharashtra is the leader of wineries in India
At present, Maharashtra has around 45 operational wineries. Among these 15 to 20 wineries directly market products, while the rest are only manufacturers.
The Indian wine industry has a turnover of around Rs 1,000 crore, of which 65 percent is from Maharashtra. Most wineries are located in Nashik. The Nashik district produces around 80 percent of India’s wine. It is followed by Sangli, Pune, Solapur, Buldana, and Ahmednagar.
Wine is produced in the state from fruits, flowers, and honey. Most wines have a low content of pure spirits, as compared to other liquors. Also, a large number of restaurants and bakeries use wine for food making.
After the implementation of this liberalized policy, the current sale of 70 lakh liters per year in the state is expected to go up to 1 crore liters.
How the general public responds to this decision, only time will tell.
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