INDIAN WINE PRODUCERS MAY INCREASE PRICES TO MAKE UP COVID LOSSES
By Siuland Law Mathews DipWSET
Credit: Hermes Rivera/Unsplash
India’s wine producers may have to raise wine prices to make up the Rs1.5billion (USD20.1m) losses incurred during the national COVID-19 lockdown, according to All India Wine Producers Association (AIWPA).
Indian local media quoted Yatin Patil, President of the AIWPA, as saying that many wine producers across the Nashik wine producing region are now considering increasing the retail prices for their products.
Patil told local media that for the past four months, money was being spent, but there was no money being earned. It has to be adjusted somewhere.
“The sale of wine dropped by 100 per cent during the lockdown, not a single bottle was sold. But our operations which includes the cellars, machines, temperature control godowns that stock the oak barrels, transportation of grapes and bottling were all running,” he told India media ThePrint.
India’s domestic wine industry is believed to worth Rs7b, the Rs1.5b loss is very substantial threatening the continual existence of some wineries.
The AIWPA has also written to the Maharashtra government to lobby for a freeze in taxes and duties on wine.
“Most wineries will increase prices, so if the government then increases the cess, as in Delhi, the price of the final product will increase a lot,” Patil said.
However, some wine producers will not increase prices for now to avoid hitting sales further.
Ravi Gurnani, Sales and Marketing Director of York Wines, said sales right now are down by 40 percent. If the price is increased, it may deter people from buying wine.
He said his winery will not consider increasing prices for now. But when demands come back, they will put up prices.
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