The most common and most likely answer to this crossword clue is the 7 letter word MADEIRA
I've seen this crossword clue in The Daily Telegraph
M
A
D
E
I
R
A
More clues leading to the result MADEIRA
- Produced a lot of revolutionary dry wine
- Fortified wine produced by one artist
- Wine in varied amounts sent north
- Wine, one drunk by crazy English painter
- Crazy time touring Italy’s principal island
- Wine produced by nameless country
- Admire a developed EU island
- Island arrived at by air, perhaps
- River of wine?
- Cheese being rejected, Gershwin produced wine
Buddy explains!

The straight part
We know that "region of Portugal" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case region of portugal = madeira.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does MADEIRA mean?
MADEIRA noun- Madeira (wine)