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Those people then will buy less wine negating the entire point of this whole thing.

Yes but at the same time, the people have paid for the wine - so the government is saying “you can’t have this wine you paid for, you have to buy more, even though you’re buying less wine”. The operation might stimulate an interest in wine and drinking, causing an increase in wine sales afterwards.

Why would they buy it in the first place then?

The entire point of this is to decrease the oversupply of wine. If anything this would make it worse assuming some proportion of the wine they bought would’ve been exported.

> the people have paid for the wine

Yes, it’s definitely unfair. So are gazilions of other subsidies paid out by most governments.

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