European Union
agriculture ministers met in Brussels on Monday to
discuss proposals to overhaul its wine industry to
reduce surplus production and better compete with
New World producers, reports International Herald
Tribune.
The reforms are aimed at reversing
falling sales and reducing the wine lakes, costing
hundreds of millions of euros to get rid of.
The European Commission says the
bloated wine sector must cut overproduction or risk
further decline against cheaper wines from New World
and other overseas producers.
Its plan suggests pulling up unprofitable
vineyards, ending subsidies for massive and costly
distillation of unsold wine into industrial products
and harmonizing labeling to make it more consumer-friendly.
It also wants to ban adding sugar
to wine produced in regions with a cooler climate.
The plan is opposed by the majority of countries in
the 27-member bloc. Vintners in areas with a lack
of sun, including Germany, Austria, Luxembourg and
the Czech Republic use extra sugar in a process known
as chaptalisation, to produce higher-quality wines
or to get the right levels of alcohol.
"The blanket ban on sugar is
a problem. The European Commission will have to modify
its proposal," said Czech Agriculture Minister
Petr Gandalovic.
The Commission and the Portuguese
EU presidency continue to discuss the draft reform
separately with each of the 27 EU member nations.
An agreement on how far the reform will go could be
reached by the end of the year, diplomats said.
European Union had filed a complaint
against India in WTO due to its high-taxation regime.
When the central government eliminated the Additional
Customs Duties bringing the Customs Duty from 100%
to 150%-the limit agreed by India with WTO, it suspended
the complaint, later withdrawing it. Maharashtra,
subsequently, increased the existing excise duty on
wine from Rs.200 per bulk liter to 150% of the assessable
value, which went up to 200% in a notification announce
November 20th.
EU has been silent on the issue since
the reduced duty to 75% from 150% helps the whisky
and liquor producers who have much more to gain due
to the bigger liquor market in India.
Resource: http://www.iht.com
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