India has traditionally not been a large wine-drinking country due to its history of prohibition and higher prices compared to spirits. However, wine consumption is growing, especially in major cities like Mumbai, Delhi, Bengaluru, and Goa. While current consumption is low at 0.003 liters per person annually, the market is projected to grow significantly in coming years. Most wine production and consumption occurs in states like Maharashtra and Karnataka, although taxes vary widely between states. The number of wineries has also increased across the country in recent decades.

2. Fermentation scenario of India
• India is not traditionally a wine drinking country.
• Due to earlier period of prohibition in India and
higher price compared to spirits like whisky and
brandy manufactured in the country.

3. • Premium Wines (Still wines): In this category the
Indian market is divided mainly into two major
categories - White and Red wines;
• Sparkling Wines: This wine is generally
considered to fall within the White wine category
by many consumers;
• Fortified wines: This is not yet made or regarded
as quality wines.

4. Consumption of wine in India
The consumption pattern is as follows:
• Mumbai (39%),
• Delhi (23%),
• Bengaluru (9%)
• Goa (9%),
• where as the rest of India has only 20%
consumption.
• Today, the consumption per head is roughly
0.0030 litre per annum.

5. Market trends
• India ranks 77 in terms of wine consumption in
the world.
• India's wine market is currently equivalent to
around 200 people sharing one bottle but it is
likely to grow at projected 22% in next three
years due to the rise in domestic consumption.
• The current consumption is 5m bottles a year.

6. • In 2006, Indian winemakers sold roughly 940,000
cases of wine domestically and 60,000 cases
overseas, up from 530,000 domestic cases and 30,000
overseas in 2003, according to industry figures.
• In 2007, the wine sales were 7, 20,000 cases.
• The Indian wine market currently stands at 4.6
million litres in volume terms and Rs 450 crore in
value terms.
• The wine market is expected to grow to 18.3 million
litres by 2015.

7. • Nearly 80 per cent of wine sales are accounted for by
the major cities, especially New Delhi, Mumbai,
Chennai, Kolkata, Pune and Bengaluru.
• West India accounts for over 41 per cent of total
volume sales of wine in India, followed by North India,
which accounts for 29 per cent of volume sales.
• Nearly 90 per cent of wine sales are for still (that is, red
and white) wines.
• Around 63 per cent of the volume sales of wine are
through off-trade channel in five -star hotels, pubs and
bar-restaurants.

8. • There are nearly 74 wineries across the country out of
which 52 are in Maharashtra and 17 in karnataka.
• Maharashtra accounts for almost 94% of the
country’s wine production.
• In the fiscal year 2006-2007, the total wine
production of grape wine in India was 1.42 crore
litres, out of which Maharashtra’s share was 1.32
crore litres.
• Investment in Maharashtra’s wine industry has
increased by 74.31% to Rs. 247.71 crore in the fiscal
year 2006-2007.

9. Indian States population with high
consumption of wine
State Litres
Maharashtra 96,752,246
Goa 1,347,668
Karnataka 52,282,946
Chandigarh 900,635
Andra Pradesh 5,742,036
Tamil nadu 6,560,242
West bengal 13,205,697
Source: moinc.com

10. Value Added Tax (VAT) for wine sale in
different states
• State of Maharashtra – 20%
• State of Delhi – 20%
• State of Haryana – 20%
• State of Chandigarh – 4%
• State of Karnataka - No VAT
• State of Tamil Nadu - 53%
• State of Kerala – 12.5%

11. Foreign Direct Investment Policy
• The policy for distillation of alcohol has been
announced vide Press Note 4 (2006) according to
which FDI up to 100% is permitted on the
automatic route for distillation & brewing of
alcohol subject to licensing by the appropriate
authority.

12. • Karnataka is the third largest wine producer of
India, Grover Vineyards has its winery situated
in karnataka region.

13. Alcohol Production in India
Alcohol Production
(in million liters)
Alcohol
Year
Molasses
Prod.
Production of
Alcohol
Industrial
Use
Potable
Use
Other
Uses
Surplus
Availability
1998-99 7.00 1411.8 534.4 5840 55.2 238.2
1999-00 8.02 1654.0 518.9 622.7 576 455.8
2000-01 8.33 1685.9 529.3 635.1 588 462.7
2001-02 8.77 1775.2 5398 647.8 59.9 527.7
2002-03 9.23 1869.7 550.5 660.7 61.0 597.5
2003-04 9.73 1969.2 578.0 693.7 70.0 627.5
2004-05 10.24 2074.5 606.9 728.3 73.5 665.8
2005-06 10.79 2187.0 619.0 746.5 77.2 742.3
2006-07 11.36 2300.4 631.4 765.2 81.0 822.8

14. Availability and utilization of ethanol
in India
Year Highest available
alcohol from
molasses (billion
litres)
Ethanol
utilization
(billion litres)
Ethanol required
for blending
(billion litres)
2010-11 2.3 0.86 1.53
2011-12 2.3 0.89 1.64
2012-13 2.3 0.91 1.70
2013-14 2.3 0.94 2.02
2014-15* 2.3 0.97 2.13
2015-16* 2.3 1.00 2.23
2016-17* 2.3 1.03 2.34
* Projected
Source: Planning Commission (2003) estimates on highest available alcohol from
molasses

15. Sugar Cane Ethanol
Limited Option for India
o Presently possible blend : 5%
o May at most be sufficient for 10%

16. Ethanol production and demand
scenario of India
Demand all over
Country
5000 Lac liters
Existing Production 1840 Lac liters
Total demand 2460 Lac liters
Source: http://www.ethanolindia.net/

17. Study questions
Which state stands first in wine production in
India.
Which state has no VAT on wine sale in the
country.
How many wineries are presently producing wine
in karnataka state.
Which are all the cities have higher consumption
of wine in India.
 List different types of wines available in India.