VAT Extension to Boost Wine Industry
The Meghalaya government has extended the VAT exemption on fruit wine from three years to 10 years. Excise Commissioner Masteidwar Mar said the move aims to support small producers and improve quality standards in the state’s growing wine sector.
Wine Boutiques and Regulations
At the Meghalaya Wine Economy Summit 2025, Mar announced amendments to Rule 377 of the Excise Act. These changes allow entrepreneurs to open wine boutiques. The boutiques can sell only registered homemade wines, either from dedicated outlets or standalone food establishments. The new rules are expected to give visitors a chance to explore Meghalaya’s wine culture while promoting boutique businesses.
Centuries-Old Winemaking Tradition
The Meghalaya Fruit Wine Makers Association highlighted the state’s long history of fruit-based fermentation using millet, rice, and local fruits like sohiong. Association president Danny Daly Kharsapam said winemaking in Meghalaya is “as old as the hills.” He mentioned Captain Hunt, who in 1947 pioneered cherry wine and cherry brandy production in Mawphlang. Hunt’s wines were popular among Assam tea planters and were sold at Kolkata’s Pegu Club before production declined in the 1980s.
Revival and Commercialisation
Traditional winemaking survived in small pockets and regained attention with the 2004 wine festival in Shillong. The North East Food Show 2019 showcased the sector’s potential. Last year, the state amended Assam Excise Rules to legalize commercial fruit wine production. This step allows structured manufacturing and market expansion, creating opportunities for rural income growth and economic diversification.
Future Prospects
Kharsapam said the association will support training, innovation, and market linkages for local producers. With the VAT exemption now extended to 10 years, Meghalaya’s fruit wine industry is poised for significant growth. The initiative will strengthen entrepreneurship and promote the state’s unique wine culture.
