The Food Safety and Standards Authority of India (FSSAI), in its new regulation, has made it mandatory for imported foods and alcoholic beverages to list ingredients on the label in Devanagari or English. But since, India remains a small market for these international wine producers, they may not be keen on listing out the ingredients exclusively for the market.
This, however, could mean more business for domestic wineries since they will become the biggest beneficiaries in the absence of international players.
Shivajirao Aher, president, All India Wine Producers Association, explained that labeling requirements have hit importers hard and led to a gap in the market, some of which is being filled by domestic winemakers.
Several importers supply wines to hotel chains and would not like to lose an important customer, so they are aiming to fill this gap from other sources.
A number of local wine producers have already started to feel the affect of the new regulations. For instance, Aher’s winery Renaissance Wines that normally sells 2,000-3,000 cases, has received orders for 10,000 cases, something unheard of in the past.
International winemakers have already been suffering because of massive tax rates in India which has stunted their expansion plans in the country.
“The current duty situation is a limiting factor, and I don’t think it’s going to change any time soon,” says Jeffery Davies who runs Signature Selections.
The new regulations issued by FSSAI may add to the woes of these winemakers and is likely to trigger wholesale change in this section.
This, however, could mean more business for domestic wineries since they will become the biggest beneficiaries in the absence of international players.
Shivajirao Aher, president, All India Wine Producers Association, explained that labeling requirements have hit importers hard and led to a gap in the market, some of which is being filled by domestic winemakers.
Several importers supply wines to hotel chains and would not like to lose an important customer, so they are aiming to fill this gap from other sources.
A number of local wine producers have already started to feel the affect of the new regulations. For instance, Aher’s winery Renaissance Wines that normally sells 2,000-3,000 cases, has received orders for 10,000 cases, something unheard of in the past.
International winemakers have already been suffering because of massive tax rates in India which has stunted their expansion plans in the country.
“The current duty situation is a limiting factor, and I don’t think it’s going to change any time soon,” says Jeffery Davies who runs Signature Selections.
The new regulations issued by FSSAI may add to the woes of these winemakers and is likely to trigger wholesale change in this section.
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