WINEMAKERS in Maharashtra, the state in which Bombay is the capital, are lobbying for a relaxation of licensing laws that would permit supermarkets to stock wine.

Cumbersome rules mean that food retailers cannot sell wine without applying for a hard liquor licence, which is too expensive for all but the dedicated booze sellers to justify. Supermarkets can technically sell beer under a cheaper licence but tend not to because the margins are low.

The Nashik District Grape Wine Manufacturers Association is pushing for wine — which offers better mark-ups — to be included in the beer licence, encouraging retailers to stock its produce. It is also seeking an easing of wine bar licensing rules and the freedom for manufacturers to sell directly to wine shops.

If they get their way, it would represent the first change in licensing laws for 30 years in Bombay, India’s biggest wine market. Winemakers believe that Delhi and other cities would follow suit to make more wine available at cheaper prices. Selling in supermarkets would also change shopping habits, introducing Indians to the Western concept of putting alcohol and food in the same basket.

Despite the recent surge in popularity, wine sales are equivalent to less than 1 per cent of the total spirits market in India. Of that, imported wines number about 120,000 cases a year and domestic wines more than 400,000 cases, a small fraction of what is bottled by France.

Foreign investment is forecast to grow from $3.5 million in 2005 to more than $100 million (£53 million) by 2010, according to a report by Siddhi Management Consultants. Among those contributing to the growth will be Vijay Mallya, the owner of Kingfisher beer, who bought Bouvet Ladubay from Taittinger for £8 million with the intention of shipping French wine to India’s middle classes.

Business 2.0, the US magazine, put exporting fine wine to India at No 9 in its “most intriguing new business opportunities in the world today”. In anticipation, Liebherr, the German firm, is exporting its wine cabinets — each of which can store 231 bottles — to India.

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