As EU wines get cheaper, Fratelli braces for a tougher fight on Indian shelves

Subscribe to enjoy similar stories. As India prepares to cut steep import duties on European wines under the trade deal signed with the European Union (EU) last month, Indian wine brands say they are bracing for tougher competition from imported labels that could soon be priced closer to Indian bottles. India currently levies a steep 150% duty on imported wines.

Under the pact, that will be reduced to 75% and eventually to as low as 20% for premium wines and 30% for mid-range wines, according to an official release by the European Commission. The phased reductions are expected to narrow the price gap between French, Spanish and Italian wines and locally produced brands. That narrowing price gap worries domestic winemakers, who say imported brands carry aspirational appeal even when priced similarly.

“Albeit inferior, if there’s a French wine available at a similar price to an Indian wine bottle, a person will gravitate towards choosing that," said Gaurav Sekhri, founder of Fratelli Vineyards, in an interview with Mint. He warned that local brands risk losing visibility before consumers even sample their products. “Ultimately, you have to get the person to try the liquid to eventually make a choice.

But if they’re not even trying it…" Sekhri said lower import duties may make it harder for Indian wines to retain shelf space as European labels look to tap India’s small but growing consumer base amid slowing alcohol consumption in their home markets. While the tariff cuts are now a reality producers must adapt to, he acknowledged the potential fallout could extend beyond wineries to grape farmers linked to the sector. Fratelli has about 1,400 acres under active farming in Maharashtra, including Sholapur and Jambhali.