Agricultural experts say that the Kerala government’s tax cut on low-alcohol beverages could be a game changer for fruit wine production, creating fresh opportunities for farmers and adding value to the state’s horticultural produce.There is considerable scope for wine production from crops such as cashew apple, pineapple, rose apple, banana, nutmeg rind and several other underutilised fruits, said P. Indira Devi, ICAR Emeritus Professor. This will be an opportunity to simultaneously enhance farm incomes, promote horticultural diversification, encourage agro-processing, strengthen tourism, and support a responsible alcohol policy, thereby aligning agricultural development with public health and economic objectives, she said.According to her, an alcohol-content-based excise policy has the potential to transform fruit wine production into an effective agricultural value-addition strategy. By making low-alcohol fruit wines more price-competitive than high-proof spirits, the policy can stimulate demand for locally grown fruits, reduce post-harvest losses, stabilise farm-gate prices, and encourage the growth of rural processing enterprises.“For a state like Kerala, where concerns about alcohol-related health and social costs coexist with significant dependence on excise revenue, a graduated tax structure based on alcohol strength could encourage moderation while maintaining fiscal sustainability,” she said.Chief Minister V.D. Satheesan had announced for the reduction in taxes on low-strength alcoholic beverages as part of the government’s broader strategy to gradually reduce the consumption of high-proof liquor, which contributes disproportionately to alcohol-related health problems.J Rajmohan Pillai, chairman and managing director of cashew brand NutKing said among the various local crops, the cashew apple holds some of the most immediate potential for Kerala’s nascent fruit wine industry. Traditionally treated as a secondary by-product of cashew nut harvesting, massive quantities of this juicy, vitamin C-rich pseudo-fruit are currently left to rot in orchards due to its highly perishable nature and astringent taste when raw.Converting this immense volume of unutilised biomass into a premium, low-alcohol beverage offers a golden opportunity to turn agricultural waste into economic wealth. Processing cashew apples into wine not only eliminates local post-harvest losses but effectively provides cashew farmers with an entirely new, secondary stream of income from the exact same acreage they already cultivate, he said.Neighbouring regions like Goa have already demonstrated the immense commercial viability of cashew-based spirits like Feni. However, Kerala’s strategic pivot towards a low-alcohol wine alternative aligns much better with contemporary, health-conscious global consumer trends. By positioning cashew wine as an eco-friendly, artisanal beverage that directly supports local biodiversity and rural women’s self-help groups, he said the state can foster a unique “farm-to-bottle” agro-tourism niche that creates sustainable jobs in rural processing units.Published on July 9, 2026