India's Great Wine Experiment
An Asian Country Steeped in Tea Embraces a Culture of Wine
A decade ago few westerners would have imagined India as a wine-producing country, but at last count there were more than 30 wineries operating there. Wine is not yet in the mainstream of Indian culture but has made astonishing inroads over the past decade. The world's fastest-growing wine market for the past five years came crashing down to earth in 2009 with sales falling for the first time since 2001. This after 25% annual growth over the past several years. India is not faced with a glut of domestic wine and prices have plummeted.
Historically, the Indian wine industry faced enormous obstacles. Most significant has been the weather patterns characterized by unseasonable rains that routinely ruined grape crops. And appallingly dry conditions otherwise that result in constant water shortage. Add to all that a 150% excise tax on imported wine that drives the market for domestic products. Unlike the Japanese and Chinese, who have supported a strong import market for high quality wine, Indian taxation laws restrict even mid-quality imported wine to the upper class.
India’s “Value” Wines
Never expensive, wine prices have fallen to 50% of their former prices in many cases. India’s “ultra-premium” brands originally priced around 800 rupees ($16.70) are now available for half price in some locations. And wine shops all over Mumbai are offering a two-for-the-price-of-one offer. The offer doesn’t apply to imports, of course, and it’s a pity that Stags Leap or Opus One hasn’t set up shop there.
Typical Indian wine is priced in the “value” market. 200 rupees ($4.17) will land you a typical bottle and don’t forget the 2 for 1 deal. The hottest wine launch of 2009 is a sub-200 rupee quaff called Samara, which is flying off the shelves as consumers realize wine doesn't have to be expensive to be eminently drinkable and some report that the “premium” wines aren’t all that much better. For high quality premium wines, all of Asia looks primarily to Australia and Europe.
Indian Varieties
There are no indigenous winegrape varieties in India. But more and more varietal wines like Chenin Blanc and Shiraz are appearing at prices below 300 rupees. Wines at prices above 500 rupees are likely to be of much better quality than in the past, and some of these Indian wines may begin to win medals at world shows in the not-so-distant future. Apart from the ubiquitous Cabernet Sauvignon, Merlot and Chardonnay, exciting new varieties like Viognier, Riesling, Malbec and Grenache are being planted and it should not take too long to find the best matches of grape variety and terroir.
At this point, the center of wine growing and production is in Maharashtra province, south of Mumbai. More than 20,000 hectares are currently under vine there, mostly for honey production. Winegrapes are also grown in Uttar Pradesh, not far from Delhi.
The Future of Indian Wine
We don’t see much Indian wine in the export market because quality standards don’t yet rise to the competition in the value category from Australia, Chile, and California. But don’t sell India short just yet. Who would have believed just a couple decades ago that world-class wine would come from Canada? With the rapid growth of wine technology, we’ll probably be seeing wines from very unlikely places. Wine production has risen dramatically over the past several years in China and Japan. Compare Japanese manufacturing post-WWII with that of the present day. Asian countries have made huge strides in technology over the past couple decades and there’s no reason to doubt that strides in viniculture will follow.
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