A Taichung alcohol dealer has been charged with hoarding 24,000 bottles of "red label" rice wine, which police say he planned to sell after Taiwan joins the WTO -- when the price of the popular beverage is to increase threefold.
The man was charged with violating the Wine and Tobacco Fair Sale Law, which outlaws the hoarding of rice wine.
Under the law, passed in the legislature in March last year, the price of rice wine is expected to climb from the present price of NT$29 per bottle to more than NT$100 after Taiwan joins the WTO.
The increase is due to new taxes levied on rice wine, made necessary by Taiwan's entry into the world trade group.
Currently, rice wine is considered a condiment and is not subject to liquor taxes. But after WTO accession, rice wine will be classified as an alcoholic beverage subject to domestic taxes.
In anticipation of higher prices, many consumers have been snapping up "red label" rice wine while prices are still low.
According to the Pingtung production division of the Taiwan Tobacco and Wine Monopoly Bureau, roughly 240 million bottles of rice wine are produced by the bureau's four divisions annually.
In the January through October period of this year, the Pingtung division has produced 135 million bottles -- twice the normal amount.
But according to the bureau, the "market is still short on `red label' rice wine due to the public's increased consumption and hoarding by those who deal in alcohol."
"Red label" rice wine is a traditional local favorite and an integral part of many Taiwanese dishes. The drink is also popular among Aborigines.
Tsai Huang-liang (蔡煌瑯), secretary-general of the DPP, said yesterday that the hoarding phenomenon was "temporary."
Once the alcoholic beverage market is opened to the private sector after WTO accession, the supply shortfall will be alleviated, Tsai said.
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