Toast to Tradition: Meghalaya's Fruit Wine Renaissance

The Meghalaya government has extended VAT exemption on fruit wine from three to ten years, aiming to advance the state's wine industry. The policy encourages the establishment of 'wine boutiques' and recognizes fruit wine as both a cultural heritage and an economic opportunity, enabling market expansion and local entrepreneurship.

The government of Meghalaya has taken a significant step in boosting its wine industry by extending VAT exemption on fruit wine from three years to a decade. This strategic move is anticipated to alleviate the tax load on small producers, thus fostering a higher quality of production for broader market appeal.

Announced at the Meghalaya Wine Economy Summit 2025, the policy changes also include an amendment to Rule 377 of the Excise Act, which allows the creation of 'wine boutiques.' These establishments will exclusively sell registered homemade wines, offering visitors a direct taste of Meghalaya's unique wine culture.

Representatives of the Meghalaya Fruit Wine Makers Association emphasize the historical significance of fruit wines in the region. Traditional winemaking practices have been a part of the local culture for centuries, and recent policy adjustments reflect a growing acknowledgment of fruit wine's cultural and economic value.

(With inputs from agencies.)