| French wine exports to India increased 35 per cent in 2006, and accounted for the maximum increase in terms of value among the categories of food products shipped to India .
Overall agricultural and food products exports from France to India jumped by 717 per cent to € 67 million in 2006 against € 8.2 million in the previous year, said the French minister for agriculture and food, Mr Nicolas Forissier. He was in India last week, leading dozen-odd French firms.
Two-way agriculture trade between India and France is estimated to be worth € 117 million. However, Indian agricultural and food export to France went up by 8.7 per cent to € 50 million from € 46 million in the review period.
Pernod Ricard and LVMH's Moet Hennessey are among the French firms setting up operations in India . Moet Hennessey's Indian arm imports about 50,000 cases of champagne, cognac and wine annually, and the firm plans to double sales in three years.
"We believe India will be among the top 10 champagne markets for us," said Yves Benard, director of Moet Hennessey's champagne activities and wine resources. "May be not No. 2 or No. 3, but in the top 10."
Moet Hennessey has a minor stake in Indian wine maker Grover Vineyards (through Veuve Clicquot, owned by LVMH), and may consider making wine in India , he added. " India is a wine producing country and it could be an interesting proposition for us," Benard said.
Import of wines at about 150,000 9-liter cases, recorded an overall increase of 20-25% in 2006. This was despite the heavy customs duties of about 264% which have been increased marginally in the recent budget announced for current year.
Though commerce and industry minister, Mr Kamal Nath hinted recently at reducing the tariff, the US has informed of its decision to go to WTO with a complaint against India . EU has already filed a complaint and has threatened to press for a dispute settlement panel to begin litigations. Meanwhile, The Wine Institute, based in California and boasting a membership of over 1000 wineries has also supported the US government in initiating an action against the Indian policies to WTO. |
