Karnataka Wine Bar policy

To encourage wine producers and also to facilitate sales, the Karnataka state excise department has put in place a draft rule for Wine Bars and Taverns that permits sale of wine through wine-taverns (as they already exist in Chandigarh), for a one time fee of Rs. 5000 and a nominal annual renewal fee of Rs. 2,000 ($38). Licensees of wholesale trade in wines will also be allowed to sell wine in bottles in bars. However, no beer or hard liquor may be served in these outlets. It is also surprising to note that a temporary daily license for retail shops to sell alcohol and for private individuals to serve alcohol at house parties, in Karnataka, also costs Rs. 5000.

Interstate wine policy: Karnataka Vs. Maharashtra

These two states have been up in arms over their wine production. Karnataka recently decided to give its local wineries a boost by increasing the excise duty on wine made outside Karnataka to Rs 300 a litre from Rs 10 a litre. This is a response to Maharashtra which, seven years ago, established a wine policy that exempts local wines from a whopping 150 per cent excise duty that other wines had to pay.