Australia in talks with India on reducing import duty on wine

NEW DELHI: Australia on Wednesday said it is negotiating with India for a reduction in import duties on wines.

"There is a department within the Trade Commission which is obviously in discussion with the authorities. I cannot, however, comment on the details of it," Australian Trade Commissioner Michael Carter said.

The volume of the imported wine market in India stands at 1,80,000 cases annually in which Australia has a 25 per cent share, he added.

Carter said the Commission was working closely with players in hospitality sector to increase Australia's share in the Indian wine market.

"We are looking at ways to increase this share notwithstanding some of the challenges like high import duties," he said.

Currently India imposes basic customs duty of 150 per cent on imported wines allowed by the WTO, over and above multiple duties such as state excise and sales taxes. Last year, the government had removed the additional customs duty ranging between 20-150 per cent on imported wine and beer.

He said Australian wine companies are looking to strengthen their presence in India.

"We are working with Australian wine companies to increase market share here. They are looking at partnering Indian wineries for technology and skill transfer as well," Carter said.

Meanwhile, Australia has formed a special task force to work out details on a free trade agreement with India.