Hyderabad: Wine manufacturers in Telangana have urged the state government’s Price Fixation Committee (PFC) not to implement a steep increase in wine prices, warning that higher levies on domestic wines could hurt their competitiveness at a time when imported wines are expected to become cheaper under the India-UK Free Trade Agreement (FTA).
The industry has appealed to the PFC, which is expected to submit its recommendations to the Telangana government soon, to exercise caution while revising the basic prices of wine brands. Wine producers have also requested the government not to impose Additional Excise Duty (AED) on domestic wines, arguing that any sharp increase in retail prices would reduce the price advantage currently enjoyed by Indian wines over imported labels.
Under the India-UK FTA, customs duty on imported wines is set to be reduced from 150% to 75%, a move that is likely to make foreign wine brands significantly more affordable in the Indian market. Industry representatives believe that if domestic wines are simultaneously subjected to higher prices and additional excise levies, consumers may increasingly shift towards imported wines, putting pressure on local wineries and grape growers.
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The All India Wine Association has also demanded a dedicated wine policy for Telangana, similar to the policies adopted by Maharashtra and Karnataka, to encourage wineries, wine tourism, grape cultivation and related employment opportunities. Association president Jagadish Holkar said Telangana needs a progressive and wine-friendly policy that supports the long-term growth of the wine industry, boosts wine sales, promotes wine tourism and creates jobs across the state.
According to industry estimates, Telangana sells nearly 85 lakh cases of IMFL and beer every month, while wine sales account for only about 25,000 cases. Although wine consumption has grown substantially from around 2,000 cases two decades ago, it remains a very small segment of the state’s alcoholic beverage market. Kishan Pedhapally, founder of Asav Vineyards and the association’s representative for Andhra Pradesh and Telangana, said wine should be treated differently from hard liquor because it is a naturally fermented agricultural product.
He added that Telangana should adopt a progressive pricing framework that provides support to Indian wines while maintaining a balanced structure for imported labels. Such a policy, he said, would strengthen domestic wineries, support grape farmers, encourage investment in wine tourism and help build a sustainable wine ecosystem in Telangana.
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