Date: 24th Aug. 2010.
To
Dear All Members,
We are glad to inform you that the delegations from All India Wine Producers Association mate Hon’ble Shri. Sharadraoji Pawar Saheb, Union Minister for Agriculture and Civil Supply, Government of India in Baramati on 20th Aug. 2010 regarding discussion on following issues.
1: Financial Solution with SLBC and NABARD
- Restructuring of existing finance
- Interest Subvention of last five years and next 7 years @ 6%.
- Additional Finance or soft loan
2: State related issues
- Marketing Barriers
- Inter State duties
- Govt. of MH issues
Association have very positive meeting with Hon. Minister and following action plan is decided.
For finance related matters NABARD, All India Wine Producers Association and Leading Bankers committee is working on the proposals and modalities of finance to recommend RBI and Central Govt. Finance ministry. Association has four to five meeting on the issues and latest MOM of the committee is attached for your knowledge.
For Marketing Barriers and other issues in the state of Maharashtra Hon. Union Minister called the State Govt. related ministries meeting with association on 23rd Aug. 2010 in Pune.
Following decision has been taken in presence of Hon’ble Shri. Sharadraoji Pawar Saheb, Union Minister for Agriculture and Civil Supply, Government of India, Sri. Ganeshji Naik, Minister for State Excise, Govt. of MH, Shri. Sunilji Tatkare, Minister for Finance, Hon. Sameerji Bhujbal, Member of Parlment Nashik, Shri. Sangitrao Saheb, Secretory, State Excise, Shri. V. Kanade, Secretory, Finance, Shri. Chahal Saheb, Commissioner, State Excise, Shri. Bhatia Saheb, Commissioner, Sales Tax, Shri Shamraoji Choughule, Chairman, Indian Grape Processing Board, Shri. Jagdishji Holkar, President All India Wine Producers Association.
State Excise:
1. License issuing policy for FLW - II, FLW- I and E- 2 for wine to be reviewed and summarized as follows:
FLW - II: (Vendor Shop)
To promote and provide wines at reasonable cost we recommend issuing of new FLW-II license on demand at anywhere in the state in present fees. Wines should be allowed to sell in different sizes such as 1 liter, 2 liter, 3 liter, 5 liter and 10 liter in tetra packs, bag in boxes, bottles etc.
Same is accepted and resolved in the meeting.
FLW – 1: (Distribution License)
At present license is issued at Ministry level. Needs to be issued at district level as per BRL (Manufacturing) License.
Same is accepted and resolved in the meeting.
E- II - Wine Bar/Wine Cafe
License fees for E-2 license should be reduced at Rs. 5000 per annum. Guidelines should be such as small restaurants and dhabas can get this license easily.
Same is accepted and resolved in the meeting.
2. SRP (Self Removal System).
At present the wineries are facing lot of problems for completing lengthy procedures for dispatching consignments. This problem can be solved by applying existing excise procedures of country liquor i.e. self removal procedure for goods. (S.R.P).
Same is accepted and resolved in the meeting.
3.Court Case No. 7033
As per the Maharashtra Grape Processing Policy 2001, the wine producers have holidays on State Excise Duty up to year 2021. State excise directed to follow state excise MRP charts and we approve the MRP. In practice we have not collected any excise duty from the end consumers. Hon. Aurangabad High Court Bench has given order to collect the excise duty if it is collected. We have received the demand notice of recovery of excise duty which we have not collected.
We request you to look into matter and resolve this issue at your end and take back our demand notice of recovery.
Same is accepted and resolved that those who have not recovered from the end consumers will simply have to give answer to the Demand Notice and then no further action will be taken.
4. Reduce K-Form Fees and excise duty for out of the state wines coming to Maharashtra
Karnataka and Goa state has increased excise duty for wine produced in the state of Maharashtra based on Maharashtra State Excise Policies for other state wines like K form and excise duty.
Maharashtra state is the biggest wine producer (80%) of total wine production in the country, so earlier Karnataka state was good market for the wines produced in Maharashtra state. Karnataka State Govt. has promised to reduce the duty on other state wines if Maharashtra Govt. is ready to reduce.
We recommend reducing the fees of K form from 6.5 lac to 1.0 lac and abolish the interstate import duty.
Same is accepted by Hon Shri Ganeshji Naik, Minister for State Excise and Secretaries of State Excise and promised to reduce the K form Fee at Rs. 10000.00 only and Import duty of Rs. 10 per Bulk Liter.
However Hon. Union Minister informed us that they will discuss with Hon. CM Karnataka to do the same for Maharashtra Wines after the notification.
5. Label registration and Minor changes
Once the Brand or label is registered, in the state excise office for sale in the state of Maharashtra. Again for minor changes on same brand or label such as for export/ imported by/bottled by/ produced by/other states state excise compulsory matter requires re-approval of labels for the same brand and required same time approx. 45 days. This is very time consuming and it affects on wine sales.
In the same brand or label minor changes should be relaxed.
Same is accepted and resolved in the meeting.
Overall Karnataka wine policy should be referred for to amendment for wine sales and promotion.
6. Permanent Pot Still Distillation Policy for surplus grapes and to liquidate excess wine stock
We recommend to issue Pot Still Distillation License (FORM I) to existing BRL holder wineries only at Rs. 20,000.00 per annum. It should be at minimum cost because volume of distillation will very less.
For the finish product made from Grape Spirit PLL License to be issued at Rs. 50,000.00 per annum for existing BRL license holders.
Excise duty for the above finish product end product (Grape Brandy) should be Rs. 65 per proof liter which will be as per the country liquor.
Duty Exemption on fortified wines on which there is 100% duty.
The product must be differentiated from the existing brandy which is produced other than grape spirit.
The definition of ‘Brandy’ needs to be defined as defined globally. Globally ‘Brandy’ is defined as the “End product 100% from wine spirit, produced by pot still distillation”
Same is refused.
But they are ready to issue only three licence in Nashik, Pune and Sangli region, so that nearby all the wineries can take benefit of it.
Finance:
1. Pending Proposal of Rs 90 Cr. financial assistance for the Grape Growers and Grape processing units
Or
1. Give Rs 90 Cr. Interest Free Soft Loan for the payment of Grape Growers and Survival of Grape processing units.
Honorable Shri. Sunil Tatkare Saheb, Minister for Finance, Govt. of MH and Secretary of finance informed that same file is yet not discussed on Cabinet Meeting and still it is pending. This proposal prepared by co-operation and marketing department and they will put it on Cabinet for discussion.
2. Wine producers are not in position to pay the outstanding VAT.
The sales Tax department has taken actions against wineries and seized bank accounts and properties for recovery.
Hon. Shri. Sunil Tatkare Saheb, Minister for Finance, Govt. of MH and Secretary of finance informed us that we will give installments for VAT payment and will stop the actions.
3. Reimbursement of Sales Tax
There was a technical difficulty in the GR that the wine manufactured and sale from 1st of Aug. 2009 will be reimbursed by 16%. Now the word manufacture has been removed and the amendment in GR will be made immediately.
MSEB (For Electricity):
Grape Processing Units are the similar to the cold storage unit and the part post harvest management. It is a forward linkage for the agriculture produce.
We request your recommendation to apply agriculture electricity tariff for the Grape processing units.
Hon. Union Minister will recommend this demand to Maharashtra Electricity Regulatory Commission.
New Delhi Policy Changes:
For the New Delhi State Excise Policies Hon Union Minister requested to submit the letter regarding the existing policy for domestic and imported wines with suggestions in the Name of Smt. Sheela Dixit, CM, Delhi to solve the issue:
We have handover the requested letter to Hon. Union Minister, Letter is attached.
Thanking You!
With Best Regards,
Prepared By:
Rajesh Jadhav / Prashant Sankpal
9422271528 / 9325250707
Secretary
All India Wine Producers Association
Following eminent personalities were present in the meeting:
1: Mr. Shivaji Aher, Member, IGPB.
2: Mr. D. D. Tupe Saheb, VP, AIWPA
3:Mr. J. Mhaske, VP, AIWPA
4:Mr. Mahendra Bhamare, VP, Nashik
5: Mr. Sadashiv Nathe, Secretory NVWA
6:Mr. Ashutosh Pawar, Director, Redwing Winery Nshik
7: Mr. Rajesh Borse, Director, Sahyadri wines, Nashik
8: Mr. Prashant Sankpal, Secretary, AIWPA
10:Mr. Bhujabali Nadgavhe, MD, Greengold Wines, Sangli
11:Mr. Pandurang Lamkane, Mohini Wineries, Solapur
12:Mr. Shivaji Pawar NC Fine wine, Sangali
13:Mr. Mahesh Patil - Monarch Winery
14:Mr. R. R. Patil, Monarch Winery, Sangli.
15:Mr. Saste – Pyramid Wines Baramati
16:Mr. Jalindhar Mhaske, Nima Winery.
17:Mr. H. Tambe, Chairman, Century Wines, Baramati
18:Mr. Anil Akhade, Renaissance wines, Nashik
19: Mr. Wakchuore Saheb, Mohini Wineries Sangali.
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