Area Development Project on Grape   in the Agri-Export Zone of Maharashtra

1.            Concept of Area Development Project (ADP)

The concept of Area Development Project (ADP) is based on integration of all the upstream and

downstream activities relating to production, processing and marketing.  The ADPs are prepared

taking into account the potential of identified areas, development of infrastructure facilities,

government programmes and analysis of the domestic and international scenario for development of

the identified product. NABARD has been emphasising the need for identification, formulation and

implementation of Area Development Projects (ADPs)  for sometime past.  Though our Regional

Offices (ROs) have taken initiative to formulate a good number of ADPs, the perusal of the progress

reports indicates that they are mostly of traditional and routine nature.  In addition, they are lacking

backward and forward linkages and are financed under Automatic Refinance Facility(ARF).  They are

usually small and do not take into account the developments that have already taken place through

the efforts of NABARD/Government and State Government agencies.  Overall, it appears that the

preparation and implementation of ADP is yet to gather sufficient momentum in the activities of our

ROs.  They are yet to have significant impact on the development of the identified regions.  In the

above background, Investment Credit Department (ICD), NABARD, HO identified grape for

formualtion of an integrated ADP.

2.         Agri-Export Zones:

The Central Government has announced the scheme for establishment of Agri-Export Zones (AEZ)in

the country under the Exim policy.  AEZ scheme comprises identification of product specific,

geographically contiguous areas for the purpose of developing and sourcing of the raw materials,

their processing/packaging leading to final exports. State Governments will identify potential export

products which could be selected for development.  Grape has been identified for development under

the scheme.  The ADP on grape prepared by NABARD will lead to projectisation of grape

development activities with bank finance in the AEZ of Maharashtra.

3.            Identification of Project - Justification:

Production of grape in India falls behind a number of other fruit crops viz. mango, banana, citrus,

apple, papaya and guava.  It accounts for only 0.02% of total fruit production.  Its cultivation in India

started quite late as compared to other fruit crops. Till 4-5 decades ago, its cultivation was

considered as non-viable, specially in the tropical areas.  However, during the period from 1987-88 to

1999-2000, the area under grape has increased from 15,000 ha. to 44,000 ha. and the production

from 2.5 lakh tonnes to 11 lakh tonnes.  The highest world productivity of 100 tonnes grape per ha.

has been recorded in the tropical region of the country.  It is now being cultivated in all the 3 major

climatic conditions - temperate, sub-tropical and tropical.

Grape has a number of uses such as table grapes, wine, raisin, grape juice and canned grape. 

However, in India, 90% of the grape is used for table purpose.  The rest of the grape is used mostly

for raisin.  The other uses of grape are very little in India.

The special reasons for identification of grape are as under :

During the period from 1991 to 92 to 1999-2000, the increase in production of grape has

shown annual compounded growth rate of 13.36% in Maharashtra.

Among all the fruit crops, grape has emerged as the most successful commercial crop in the

recent years.

About 2% of the grape produced in India is exported successfully to Europe, USA, Middle

East and South East Asian countries, as against 0.10% of all fruits.

India's productivity of grape at 25 tonnes/ha. is the highest in the world.

The quality of grape grown in India is comparable with the best in the world, since Thompson

seedless variety of grape accepted throughout the world for its high quality has been highly

successful in Nashik and adjoining districts and more recently in certain districts of Karnataka

and Andhra Pradesh.  A few mutant varieties of Thompson seedless of similar quality, such

as Sonaka, Tas-e-Ganesh and Sharad seedless have been developed in India.

Besides use of grape as fresh fruit, it could be processed to value added products such as

canned grapes, raisin, juice and wine.  The by-products from processed grapes such as

tartaric acid, which has industrial use, can also be developed.

Grape of India is highly competitive in the international market because of its high

productivity, good quality and also lower cost of production (being very labour intensive crop).

Investment requirement is much higher for grape than any other crop, the unit cost being

Rs.3.64 lakh per ha. ( in Maharashtra) for high density plantation, which necessitates

institutional finance.

Scientific pre-harvest and post-harvest management practices such as drip irrigation,

training / pruning, pest management, application of growth regulators, pre-cooling, cold

storage, reefer transportation including packaging and processing are gaining ground in India,

which all require high investment. 

Grape is perhaps the only crop in India which is not usually grown by any farmer without

recourse to bank credit.  During 2000-01, NABARD disbursed Rs.47.04 crore of refinance

assistance for grape, which constituted 19% of total disbursement of Plantation & Horticulture

sector (246 crore) and about 40% of disbursement under horticulture alone.  The share of

Maharashtra was Rs.33.35 crore i.e. 71% of total refinance disbursed under grape in the

country.

4.            International Scenario:

The total world production is estimated to be about 63 million tonnes which amounts to about 16% of

total fruit production.  It is only next to citrus and bananas and followed by apples (Annexure-I).  The

major world producers are Italy, France, Spain, U.S.A, Turkey, Argentina, Iran, Portugal, South Africa

and Chile (Annexure-II). The compounded annual growth rate (CAGR) from 1990 to 2001 was -

0.78% for area expansion and 0.74% for production for the world as a whole. During the same period

the CAGR for both area expansion and production were high in China, India, Australia, Egypt, Chile,

Iran, and USA, whereas these were negative to low in traditionally important countries, such as Italy,

Spain, France, Germany, Greece and Turkey(Fig.1)

Unlike in India, 70% of the world grape production is used for wine making.  However, in Turkey,

Italy, Chile, Argentina, Brazil and U.S.A., considerable quantity of grape is also used for table

purposes and making raisin.

About 20% of the table grape production is exported as compared to 9% export of other fruits.   The

major exporters are Chile, Italy, Spain, USA, etc. (Annexure-III).  World trade in grapes has

increased from 1 million tonnes in 1980 to more than 2.7 million tonnes in 2000.  Chile accounted for

almost half of the growth in export of grape by increasing its exports from 49,600 tonnes in 1980 to

6,76,474 tonnes in 2000.  The countries which are emerging as major exporters, besides Chile, are

South Africa, Argentina, Brazil and Australia.  These countries increased their share  in the world

exports during the off-season in the USA and European Unions.  Mexico, India and Hongkong have

also emerged as grape exporters. During the period from 1993 to 2000 the CAGR for the export of

grape in the world was 4.55%. The countries which had high CAGR during the same period included

China, Hong Kong SAR, Mexico, Turkey, Chile, Argentina, Australia, Netherlands, Syria, Germany,

Lebanan and South Africa and the countries with low to negative CAGR included Italy, France, India,

Spain and Brazil(Fig.2).  The growth in international trade of grapes was encouraged by the following

factors :

Development of new varieties enabling extension of marketing season.

Application of post harvest technology .

Large investment in marketing infrastructure.

Adoption of quality control measures right from planting to export.

The main export markets for grape are USA and Europe.  The size of European market is more than

1 million tonne.  The South East Asia , Japan and also Middle East to some extent are other

important markets.( Fig-3)

5.         Grape Export from India:

The grape export from India started in the year 1991 with the initiation of economic liberalisation. 

Total export is about 20,646 tonne, which amounts to only 2% of total production.  The importers of

Indian grapes are UK, Netherlands, Germany, USA, UAE, Saudi Arabia, Quatar, Oman, Bahrain, Sri

Lanka, Bangla Desh, Mauritius, Singapore and Hongkong.  However, our export to the Middle East

accounts for 90% of the export while 8% is accounted by European countries and the rest by the

South East Asian countries.

The grape export has become successful due to the following reasons :

Cultivation of Thompson seedless  variety of grapes.

Grape cultivation is largely in the hands of progressive and well-to-do farmers.

Adoption of latest scientific production technology, which includes use of root stocks tolerant

to salinity and nematodes, optimum cane density, drip irrigation, proper pruning and training

etc.

Adoption of scientific post harvest management which includes use of sulphur dioxide

releasing pads, grading, packaging, pre-cooling, cold storage and refrigerated transportation.

Availability of institutional credit.

Farmer friendly State Government policies specially in the states of Maharashtra and

Karnataka.

Incentives in the form of subsidy from National Horticulture Board( NHB), Agriculture and

Processed Food Export Development Authority( APEDA)  and Ministry of Food Processing

Industries ( MFPI).

Production of table grape is likely to increase in the near future, as demand is set to increase.  The

main constraints for development of grapes in India are as under :

Dependence on single variety i.e. Thompson seedless grape which has small berry size and

production season is short.

Inadequate and high cost post harvest management technologies.

Lack of diversification in utilisation of products such as juice, wine and canned grape is still

not significant.

Grape is still considered luxury fruit and consumed by only the affluent section as compared

to other fruits.

Protective measures by the developed countries such as USA and EU for import, specially

during their production season.

Production of wine from grape is still non-priority item and treated on par with alcoholic drinks,

which make it ineligible for tax concession.

6.         SWOT Analysis :

A detailed SWOT Analysis based on the views of National Research Centre(NRC) Grape and

APEDA is presented below.                                                                                                     

Strengths:

Agro climatic diversity for grape cultivation to sustain productivity.

Technology available to achieve the highest productivity in the world.

Scope to grow grapes almost throughout the year excluding November and December.

Possibility of double cropping.

Technology available to produce world class grapes.

Technology to produce good quality raisins.

Concentration of grape cultivation in clusters facilitating development of infrastructure,

marketing and adoption of technology.

Weaknesses:

Narrow range of varieties which include only Thompson Seedless, Anab-e-Shahi, Bangalore

Blue.

Limited harvesting season for export

Short period of cropping in sub-tropical places (February to April).

Production of export quality grape is low (only 15% of the production).

Inadequate network of cool chain.

High air freight.

Too many exporters.

Susceptibility of the varieties to cracking, rotting, pink berry formation and mildew diseases.

Opportunities:

New varieties for off-season / early harvesting.

Improvement in North Indian varieties for expanding the season.

Development of less expensive training system.

Development of cultural practices for autumn cropping in sub-tropical places of North India.

Development of varieties resistant to downy and powdery mildew diseases

Improvement of size, colour and packing

Exploring south-east Asian markets for exports.

Threats:

Rains during fruit ripening in North India.

Increasing soil and water salinity.

Barrenness of vines and coulure (flower and flower bud drop) in North India.

Decreasing ground water resources and drought..

Heavy spray schedule with  potential of pesticides residues.

Chile and South Africa have extended their season by growing early and late varieties.

Fluctuation in international price. 

7.            Objectives of the Project:

The objectives of the present project are as under :

To promote development of grape cultivation specially for export with institutional finance.

To promote diversification in the utilisation of grapes i.e. production of raisin, wine, grape

juice, canned grape, in addition to the table grape which is being done at present.

To promote use of scientific production and post harvest management technologies for

increasing productivity and improving quality of grape.

8.            National Perspective Plan for Grapes:

National Research Centre (NRC) for Grapes Indian Council of Agriculture Research (ICAR), Pune

has prepared a perspective plan for grapes as indicated below :

  Present By 2020

Per Capita Availability

(g/year)

750 1,200

Area under cultivation

('000 ha.)

43 70

Production (Million

Tonne)

1.1 2.24

Productivity (t/ha.) 25 32

Raisin (' 000 t) 22 50

Export of table grape

('000 t)

21 50

 

9.         Area, Production and Productivity :

In terms of production, grape occupies the 7th position (only 0.02% of total fruit production) among all

fruits, but it has the highest productivity among all fruits (Annexure-IV) ( Fig-4).

Area, production and productivity of grapes in  India are given in Annexure-V .  While during the

period from 1991-92 to 1999-2000, India's area under grape has increased by 50% (approx.), world

area under grape had shown declining trend till 1997-98 and thereafter it started increasing.  During

the same period, India's production of grape had also shown 50% increase, whereas world

production of grape shown fluctuating trend.  According to a  report, the worldwide grape production

fell from  60 million tonne during the mid '80s to 55 million tonne in 1995. Thereafter, it has increased

to 63 million tonne by 2000-2001.  However, the table grape production has remained rather stable. 

The fall in grape production is mainly due to the fall in production of wine grape.  Overall, the report

clearly indicates the possibility of increase in the production of table grapes in future.  The CAGR

during the period from 1991-92 to 2000-01 indicates that India specially Maharashtra achieved much

higher rate than world as a whole (Annexure-VI) (fig-5).

India is credited with achieving the highest productivity of grape i.e. average productivity of 25 tonne

per ha. as against the world average of 8 tonne per ha. and also the record yield of 100 tonne per

ha.  The conducive climate in most of the important grape growing areas, well developed production

technologies and the progressive entrepreneurship with easy availability of institutional finance for

the crop made it possible to increase the grape production and productivity.  There is still scope to

increase grape production in India specially in Maharashtra by increasing the area under cultivation.

10.       Project Area and Basis for Selection:

In India, Maharashtra, Karnataka and Andhra Pradesh are the most important grape growing states. 

Maharashtra accounts for  63% of grape production.  In Tamil Nadu, Western Uttar Pradesh,

Haryana and Punjab also grape is cultivated in large areas and there is scope for further expansion

in the area. However, the present project has been prepared for Maharashtra only.

The grape is cultivated in large scale in three districts of Maharashtra viz. Nashik, Pune and Sangli

(Annexure-VII).  However, it is proposed to be expanded in Ahmednagar, Solapur, Oosmanabad and

Latur also, each of which has more than 500 ha. under grapes.  Thus, the project is proposed to be

implemented in all the seven districts.  However, the grape cultivation can be extended to other non-

traditional districts also.

11.            Infrastructure facilities:

11.1     General Infrastructure:

As regards the general infrastructure facilities, the project area is well developed.  The relative index

of development indicates that Pune (157) is most developed, followed by Sangli (87), Solapur (85),

Nashik (81), Ahmednagar (79), Osmanabad (62) and Latur (51). It may be observed from the data

given in  Annexure-VIII  that all the districts are connected by roads and railways. 

Maharashtra Industrial Development Corporation (MIDC) identifies potential industrial areas in the

district and notifies them as such.  These areas are developed by MIDC as industrial estates by

providing infrastructural facilities and other necessary amenities, like power, water, etc.  The

processing units for grapes can be established in these areas.  District Industrial Centre (DIC)

provides various incentives under the State and Central Government  Schemes for promotional and

development activities which may include  grape processing.  NABARD has also played a key role in

development of infrastructure in the project area by sanctioning a number of projects under RIDF to

the State Government for development of minor irrigation facilities, construction of rural roads and

bridges.  The details of infrastructural facilities created under RIDF area given in Annexure-IX.

11.2     The various productive infrastructure required for the development of grapes include the

following :

Irrigation

Nursery

Cold chain facilities

Transport

11.2.1.            Irrigation   :

The most important productive infrastructure for raising crops, especially grapes, is irrigation.  It

cannot be grown commercially without irrigation.  The irrigation technologies that are being applied in

the districts include drip, sprinkler, and lift irrigation.  Grape is irrigated by drip irrigation system.  In

the present project, drip irrigation system has been proposed for the entire project area.  Existing

sources of irrigation are proposed to be utilised.  The district-wise position of the availability of

irrigation facilities is given below. 

Nashik

The irrigated area in the district is 29% of the net sown area.  The major sources of irrigation are

Godavari, Girna and their tributaries.  The surface water irrigation sources are made available

through 11 major, 6 medium and 82 minor irrigation projects of the State Government.  There are a

large number of lift irrigation schemes sanctioned by Cooperatives and Commercial Banks. There

are also a large number of irrigation wells in the district.  The district has been selected by the

Central Government for application of DRIP Irrigation Technology.  Under RIDF, 4 minor and 1

medium irrigation projects for irrigating 8663 ha. area have been sanctioned.

Pune

Pune has 25% net irrigated area of the net sown area.  About 56% of the net irrigated area is

covered by Surface Water Irrigation System and the balance 44% by Ground Water Sources.  The

major river in the district  is Bhima, which has many tributaries i.e. Ghod, Indrayani, Mula, Mutha,

Nira, etc.  Under RIDF, 7 projects for irrigation of 11,389 ha. area have been sanctioned.

Sangli

The net irrigated area in the district is about 21% of the net sown area. Krishna and Warna are the

major potential rivers of the district with Yerala, Vandani, Agarkani, Man and Bor as their tributaries. 

Three major irrigation projects are individual and cooperative lift irrigation schemes on river Krishna,

Koyana and Warna. Besides, part of the Tembhu Lift Irrigation Project, Tal Karad and Krishna

Project's  Arfal Canal in the district provide irrigation to Sangli district partially.  10 medium and 14

minor irrigation projects are also in progress in the district.  The completion of major, medium and

minor irrigation projects will bring about 60% of the total cultivated area of the district under

irrigation.  Under RIDF, 11 projects for irrigation of 5,051 ha. have been sanctioned.

Sholapur

About 24% of the net sown area is under irrigation in the district.   Major rivers in the district are

Bhima, Sina, Nira, Man and Bhogawati.  Under Krishan Valley Development Corporation, 1.70 lakh

ha would be brought under irrigation.  Under RIDF, 11 projects for irrigation of 14,784 ha. have been

sanctioned.

Osmanabad

About 17% of the net sown area is under irrigation.   Various major, medium and minor schemes are

under implementation in the district.  So far, the total capacity created under various projects is

86005 ha.  Under RIDF, 37 projects for irrigation of 16110 ha. have been sanctioned.

Latur

About 18% of the net sown area is under irrigation.  Various major, medium and minor irrigation

projects are under implementation.  The other activities include deepening of wells, small lift irrigation

schemes and underground pipelines.  Under RIDF, 31 projects for irrigation of 19,616 ha. have been

sanctioned.

Ahmednagar                                                                                  

About 28% of the net swon area is under irrigation of which 72% is irrigated through ground water

resources and the rest through canals. There are 3 major, 5 medium, and 93 minor irrigation projects

having command area of 110882, 10846 and 11027 ha respectively. Under RIDF 11 projects for

irrigation of 8758 ha area have been sanctioned. The systems of irrigation include drip, sprikler and

irrigation.

11.2.2.    Nursery :

The grape growers raise their own nursery by using hard wood cutting on their farms.  The mother

plants are available  from local progressive farmers and NRC, Grapes.

11.2.3.  Cold Chain facilities:

Already total capacity of about 1000 tonne per day for the cold chain facilities have been created in

the region.  During the entire season of export of grapes of 70 days, only 16000 tonne grape is

exported.  Since grape vines are proposed to be developed in all the 7 potential districts,  additional

38 cold chain facilities with capacity of 7,600 tonne have been proposed since these facilities are

required to be set up on the farmers’ field or very near to the farmers' field.

11.2.4.   Transportation :

For export market, grapes are transported by refrigerated containers of  the shipping lines.  For

domestic market, ordinary trucks are used for transportation to various commercial centres.

 12.       Bank Branches:

The number of branches of different banks working in the proposed area of operation are given in

Annexure-X.  It is observed that the population per branch of a bank varies from 3188 to 11604.

 

13.            Production Technology:

As a result of the 100 years' research on grape,  production technology for the crop is highly

developed.  The farmers being very progressive take initiative in adoption of the new technologies. 

As a result, India has achieved the distinction of the highest productivity in the world.  A gist of

production technologies being followed by farmers is given in the Annexure-XI .

14.       Post Harvest Technologies:

The export of grape requires grading, packaging, precooling, cold storage and refrigerated

transportation. These technologies have been developed in India.  However, for domestic market, the

post harvest technology is not developed, except cold storage to some extent.

15.            Processing Technologies:

Hardly 10% of the grape is processed, of which, raisin is the main product in India.  1% - 2% of the

grape is being processed as wine and juices.  The raisin production technology have been developed

with import of ethyloleate.  The procedure of raisin making is given in the Annexure-XII.  Very few

units are making wine or juice from grape in India.  Wine makers depend on imported technology. 

An outline of the technology is given in the Annexure-XIII.

16.            Physical and Financial Programme:

The project will have broad physical and financial programmes, as indicated below :

A.            Expansion of Area:

Expansion of area includes drip irrigation in all identified districts and saline area in Sangli district

only.  The compounded annual growth rate from 1991-92 to 1999-2000 for increase in area  in

Maharashtra is  5.79 % as against -0.78 % in the world.  Since the GOI has identified grape for

development in the Agri Export Zone of Maharashtra,  the projected area for expansion of grape

under the project has been estimated, assuming the compounded annual growth rate of 7.79 %. All

grape growers install drip irrigation system.  Therefore, the drip irrigation is proposed to be installed

in all the areas to be developed.  There is 17410 ha  salt affected area in Sangli district.  It is

proposed to develop 1144.24 ha. of salt affected area over a period of three years.  The year-wise

projected expansion of area under the crop and financial outlay are as under :(Fig-6)

 

Year Area Expansion in

(Ha.)

Financial

Outlay (Rs.in

lakh)

 

2002-03 2,633.32 11,119.19

2003-04 2,838.53 11985.69

 

2004-05   3,059.73 12919.72

 

Total 8,531.58 36,024.61

                                                                              

District-wise details are given in the Annexures-XIV.

B.        Post Harvest Centres:

It is proposed to develop 38 post harvest centres during the three year duration of the project, which

will have the facilities of grading, packing, precooling and cold storage.   The various assumptions

based on which the requirement of post harvest centres have been worked out, are given in the

Annexure-XV.       

The year-wise projected requirement of post harvest centres and financial outlays are as under:  

Year Physical outlay(no) Financial

outlay(Rs.lakh)

2002-03                

        

10 501

2003-04 14 702

2004-05                

     

14 702

Total 38 1,905

                                                                      

District-wise details are given in Annexure-XVI

C.        Raisin Production :

Based on the various assumptions detailed in Annexure-XIV,  raisin making units  proposed to be set

up during the duration of the project are as under:

 

Year Physical outlay(No) Financial

outlay(Rs.lakh) 

2002-03 386 610

2003-04            483 764

2004-05 595 941

Total                    1464 2315

 

District-wise details of the physical and financial programme are given in Annexure-XVII

D.            Wine/Juice Making :

More than 50 letters of intents have been issued by the Govt. of Maharashtra for setting up wine

making units  in the proposed wine parks at Nashik and Sangli.  Since, so far, no licence has been

issued, no specific projection has been made for wine making.  It can be a part of the project as and

when such units come up.  While the production of grape increases during the progress of

implementation of are expansion, efforts will be made to promote juice and canned grape production

units.

E.            Summary of Physical and Financial programme:

Summary of the entire physical and financial programme is given in Annexure-XVIII. High-lights of

the financial programme are as under:                                      

                                                                                    Rs. In lakh

Year                      TFO Bank loan              NB refinance

2002-03 12,231.01 10,285.18 9,256.66

2003-04              13,451.2 11,286.97 10,158.27

2004-05               14,562.3 12,213.7 10,992.33

Total 40,244.51 33,785.85 30,407.26

       

17.       Unit Cost:

The unit cost of the various items of development are as under:  

Area Expansion Rs.3.64 lakh per ha

Drip Irrigation Rs.0.58

Reclamation of Salinity Rs.0.75

 

Details of the unit cost along with economics are given in Annexures-XIX(a) and (b)

Post Harvest Centres

The unit cost for the post hsarvest centres will vary from Rs.45 lakh to Rs.51 lakh.  Details of

assumptions based on which the cost has been worked out along with economics are given in the

Annexures-XX(a), (b) and (c).

Raisin Making

The estimated cost of raisin making unit is Rs.1.58 lakh.  Details are given in the Annexure-XXI.

18.            Banking Plan:

The banks will finance the eligible farmers under terms and condition within the guidelines of RBI. It

is proposed that the banking plan would be prepared by the Pune RO of NABARD in consultation

with the banks operating in the area.

NABARD will provide refinance assistance to eligible banks as per usual terms and conditions

19.       Profile of Farmers, Exporters and Processors:

Like cultivation of other fruit crops, the grape cultivation in Maharashtra is also in the hand of big,

medium and small farmers.  However, large quantity of grapes is produced in the farm of big farmers

whose family holding in many cases exceeds 30 acres.  These farmers are progressive and have

access to required resources, technologies and institutional finance.  So, the grape cultivation has

developed mainly because of the efforts made by these farmers.  Many of these farmers have visited

Europe, South Africa and Israel to learn about the latest technologies and marketing prospects in

Europe.  The exporters are broadly of three categories :

Merchant Exporters

Farmer Exporters and

Cooperatives

It is interesting to note that the farmers in this area have developed direct marketing channels to

Europe.  MAHAGRAPES, an Association of cooperatives also exports grapes.  A list of exporters is

given in Annexure-XXII.  The grape processing in the state is mainly for making raisin which is

predominant in Sangli district.  Both farmers and traders are engaged in raisin making.  Recently,

one or two units have come up for making wine from grape by the industrialists/ entrepreneurs.

20.            Quality and Standards:

Maintenance of high quality is essential for any food product especially for export of product like

grape to  Europe and other developed countries.  The quality of grapes like other fresh produce is

decided by shelf life, visual appearance and eating quality.  The basic quality standards for

exportable grapes are indicated below :

Colour              :            Greenish yellow

Sugar context            :            16 - 20o bric

Berry size            :            4-5 gms. per berry

Bunch weight            :            350 - 500 grams

(Loose bunch)

21.       Price:

The wholesale price trend of Indian Grape in United Kingdom - variety Thomspson seedless during

the period from 2000 to 2002 is indicated below.

Year Price (Pond per kg by air)

  Low High

2000 0.90 1.10

2001 1.40 1.60

2002 0.87 1.90

Source : FICCI - AIC Overseas Price Report European Fruits & Vegetable - Weekly

22.            Marketing of Grape:

Marketing of grape is unique in India because it is carried out by growers themselves, the

cooperatives and also the middlemen.  The grape growers have established their marketing channels

directly in the countries abroad.  The cooperative structure is also strong for marketing of grapes. 

MAHAGRAPES is one of the largest exporters of fresh grapes from India.  It is a partnership firm of

16 cooperative societies and  it is equipped with pre-cooling and cold storage facilities.  The

organisation has quality control officers which monitor fruit quality at different stages of operations

beginning from cultivation in the farm to packing the fruit for export.

23.            Government Schemes and Incentives:

Grape Production                         :

Grape is not eligible for the subsidy under Employment Guarantee Scheme of the State

Government.  However, the subsidy is available for installing drip irrigation system  under the

Plasticulture Promotion Scheme of the GoI.

Post Harvest Schemes:

Various Government Organisations which provide incentives for post harvest schemes / facilities

include APEDA, NHB, MoFPI and MSEB.

APEDA :

APEDA has a number of schemes for providing subsidy ranging from 25% to 50% subject to certain

ceilings for development of various infrastructures and also conducting feasibility studies, etc.  The

details are given in the Annexure-XXIII.

NHB  :

NHB has a scheme for commercialisation of horticulture under which subsidy is available to the

extent of 20% of the outlay with a limit of Rs.25 lakhs.  NHB also operates the capital investment

subsidy scheme for construction/expansion/modernisation of cold storage facilities through NABARD/

NCDC under which  subsidy is available to the extent of 25% of the capital cost subject to the limit of

Rs.50 lakhs.  Details are given in Annexure-XXIV.

MFPI:

The various schemes of MFPI are as under :

Establishment of post harvest infrastructure upto 50% of the capital cost with ceiling varying

from Rs.75 lakh to 200 lakh depending on type of organisations, areas, etc.

Assistance for dissemination of low cost preservation technology on grant basis upto Rs.5

lakh.

Assistance to non-profit organistions / universities / NGOs / public sector units @ 100% of the

project cost and  to private sector @ 33.3% of the project cost to undertake R &D projects

relating to post harvest management.

Scheme for development of manpower requirements covers the cost of training as also

creation of infrastructure facilities and get an assistance ranging from Rs.2 lakh to50 lakh.

Specific grant basis schemes available for marketing (Rs.10 lakh to 25 lakh); strengthening of

backward linkages (Rs.10 lakh) and participation in international exhibitions, conduct of

market surveys (Rs.3 lakh), etc.

Scheme for setting up Modernisation/Expansion of Food Processing Units with assistance

varying from Rs.25 to 50 lakh.

Scheme for setting up of mobile fruit and vegetable processing unit with assistance upto

Rs.60 lakh.

Govt. of Maharashtra:

Government of Maharashtra through Maharashtra Industries Development Corporation provide the

following incentives / facilities :

25% of capital cost of pre-cooling, cold storage, refrigerated van, etc. subject to a limit of of

Rs.30 lakhs.

Reservation of plots in industrial estates for setting up of a pre-cooling and cold storage and

also Sales Tax concessions are extended to these units.

MSEB charges uniform rate of Re.1.5 per unit of electricity consumption for both LT & ST in

pre-cooling and cold storage units.  Subsidy of 25% is provided to promote export of fruits and

vegetables.

Marketing assistance is extended to the products upto Rs.2 lakh for export of fruits and

vegetables.

Maharashtra has announced grape processing policy for 2001 under which various incentives

have been proposed (Anneuxre XXV).

24.       Grape Research:

Grape research in India is more than 100 years old.The National Agricultural Research System,

under the ICAR, is the main coordinating mechanism for grape research in the country.  The various

institutions involved are National Research Centre for Grapes, Pune, Indian Institute of Horticulture

Research, Hisserghata, State Govt. Departments of Agriculture and Horticulture, Agricultural

Universities and also a few NGOs like Grape Growers Association of Maharashtra & Andhra Pradesh

and Maharashtra Association for Cultivation of Science.  These organisations have done useful work

in the areas of plant breeding, agronomy, plant protection and crop utilisation.  As a result of the

efforts of these organistions and also empirical works of the viticulturists, grape cultivation practices

have been developed.  Grape is only one of the very few crops in India which has attained average

productivity more than the world average.  However, some of the problems which need to be

addressed are as under :

Hastening of ripening in Pusa Seedless.

Coulure (drop of flower buds, flowers and young berries) in  North Western plains.

Pink berry formation in Maharashtra.

Uneven ripening in Beauty Seedless and Gulabi.

Post harvest berry drop in Anab-e-Shahi.

Lack of superior varieties for raisin making.

Lack of seedless varieties with bold berries of good quality.

Lack of cultural practices to increase the firmness of berries  to withstand transport to long

distant markets.

Lack of varieties for good quality wine, juice and ready to serve beverages.

Lack of agricultural practices for production of good quality grapes in the off-season specially

during November and December in India.

25.            Extension Services and Training:

Extension services for grapes are provided by the Departments of Horticulture of State Governments

and Agricultural Universities.  However, in Maharashtra, there is a State Grape Growers Association,

which provide all possible technical guidance and services in producing quality grapes to its

members.  The National Research Centre for Grapes at Pune also provide extension services to

Grape Growers.  Salient features and Activities of the Maharashtra State Grape Growers Association

are indicated below :

20,000 members cultivating grapes.

Managed by elected body of grape growers.

Co-operative body registered under Public Trust Act.

Four officers in major grape growing areas to provide services to grape growers.

Organisation has a well-maintained demonstration farm and nursery facility at Manjari.

Arrangement of seminars, field training programmes, visits of scientists etc.

Well-equipped laboratory to analyse soil, water and petioles for fertigation schedules.

Representations to various ministries in the state and central governments to plead the case

of grape growers.

Recognition from various government and academic institutions.

Recently SBI has launched Project Uptake for Grapes under which it has arrangement with the

National Research Centre for Grapes for transferring pre-harvest technology with the objective to

achieve improvement in productivity and quality in the three main grape growing centres viz.

Tasgaon in Sangli, Pimpalgaon in Nasik and  Pandharpur in Solapur districts.

26.       Project Implementation and Monitoring:

The Maharashtra State Grape Growers' Association which have wide network with the grape growers

in the region may identify the farmers to prepare their proposals and furnish to the banks operating in

the area.  Our Pune RO may convene a meeting of all important banks, Maharashtra State Grape

Growers' Association, National Research Centre for Grape, Mahagrape and State Government

Department of Horticulture to discuss the objectives, physical and financial parameters of the

programme and to prepare a banking plan and detailed action plan.  The Association may also

workout the training schedule, jointly with NRC Grape for the State Department of Horticulture for

training the entrepreneurs.  The Association may also arrange to supply good quality of inputs

required for the grape growers.  The financing banks will appraise the proposals as per the usual

norms.

NRC Grapes may submit an R&D Project on production of off- season grapes to NABARD for

funding.

The progress of the project will be regularly monitored at the BLBC, DLCC and also SLBC level.  Our

DDMs and the lead bank of the area will also involve in coordination and implementation of the

project

27.       Project Benefit:

Implementation of the project will give rise to additional production of 177535 tonnes grape for

domestic market which in monetary terms amount to Rs.266 crore, export of 8060 tonnes grape i.e

Rs36 crore and 5196 tonnes raisin i.e Rs.36 crore per year on completion of the entire physical

programme(Annexure XXV). A merchant exporter may earn a net income of Rs.12.81 per Kg.

(Annexure-XXVI).

LIST OF ANNEXURES

1. Production of major fruits in the world (2001)

2. Major Grape Producing Countries of the world (2001)

3. Major Grape Exporting countries of the world (2000)

4. Area, Production & Productivity of major fruit crops in India

5. State-wise Area, Production & Productivity of grapes in India

6. Growth rates for Grape in Maharashtra, India and World

7. District-wise area, and production of grape in Maharashtra

8. Relative Index of Development

9. Infrastructure development under RIDF

10. Banking infrastructure in the project area

11. Production technology

12. Technology of raisin making

13. Technology of wine making

14. Potential for expansion of area under grape

15. Estimation of potential for post harvest management

16. Physical and financial programme for post harvest management

17. Physical and financial programme for raisin making

18. Summary of Physical and Financial Programme

19. Unit cost and economics of cultivation for grape

20. Unit cost and economics for post harvestment centres

21. Unit cost and economics for raisin making

22. List of Exporters

23. APEDA Schemes

24. NHB Schemes

25. Extracts from Maharashtra's Grapes Processing Industry Policy, 2001

26. Projected Benefits

27. Cost and Benefit of export of Grape per Kg to United Kingdom

28. ANNEXURE - XI

29. Production Technology of Grape: Grape production is done on scientific lines

in India. The package of practices for establishment and management of vineyard

is well established in Maharashtra. The climatic factors such as temperature,

occurrence of frost, rainfall and relative humidity play a vital role for commercial

cultivation of grape. Generally grape requires a hot and dry climate. Region with

high rainfall as well as high humidity is not conducive for grape. Hence the coastal

districts of the state are not suitable for grape production. Although grape can

adapt to a variety of soil, it grows and performs best in deep medium-textured

soils (loams and sandy loams) with good drainage and low salt content. However,

salinity is the major hindrance in the development of grape in Maharashtra. But

the development of salt resistant rootstocks like dogridge and salt creek has

given the impetus to area expansion under grape in Maharashtra. Most of the new

vineyards are established on dogridge rootstocks in the state. The rootstocks are

supplied by NRC Grapes, Maharashtra Grape Growers' Association etc. Some of

the progressive farmers produce rootstocks at their own farms and also sell them

to other farmers. The main varieties grown in the state are Thomson seedless,

Sharad seedless, Tas-A-Ganesh, Uniblank etc. The mother plants are available

with NRC grapes and farmers' field. The rootstocks are raised by using hard wood

cutting method on flat beds at desired spacing, depending upon the variety and

method of training. The spacing of 1.2m X 3.6m for Thomson seedless under

bower system and 1.8m X 2.4m on T-trellis and Y-trellis is followed in the region.

When the rootstock is one year old, in-situ grafting is done by skilled labour.

Adequate and timely Irrigation is crucial for production of quality grape. Most of

the vineyards are equipped with drip irrigation system in Maharashtra. Grape

requires heavy manuring and the cost of manuring may be as high as 40 per cent

of the total cost of management of vineyard. Grape is one such crop where heavy

doses of fertilizers are given in India. On an average, N @ 1000 kg/ha, P2O5 @ 500

kg/ha and K2O @ 800 kg /ha are applied in Maharashtra. Full dose of N is applied

during April. The farmers scrupulously follow practices of shoot thinning and

pinching in the state. Shoot thinning is done after back pruning to retain one

shoot per 2 ft2. The farmers follow scientific methods of application of fertilizers

after undertaking petiole analysis. Pinching of the shoots after 15 leaves (45 days

after back pruning) is aimed at reducing the endogenous level of gibbrellins which

are produced in the young growing tips and facilitates the process of floral

differentiation. The application of growth regulators in grape production is very

common for induction of seedless grape and regulation of berry size and bunch

weight etc. Grape vineyards require frequent inter culture operations to keep the

soil free of weeds and insect pests. Most of the vineyards nowadays are trained

on Y-Trellis system in Sangli district, whereas, in Nashik district Bower system of

training is common. Pink berry disease is very common in Nashik district. The

major cause of pink berry disease as per NRC Grapes is due to large variation in

the diurnal temperature and acute moisture stress. Leaf curl is another important

disease reported in Narayangaon, Pune, Solapur, and Sangli. The cause of leaf

curl has not yet been established. The optimum time for harvesting fruit depends

on the variety. The brix and brix acid ratio is followed to decide the optimum

maturity by the farmers. As grape is highly perishable fruit, it requires careful

handling. The individual bunches of grape are removed manually from the vine

carefully and packed in the boxes. The grapes are transported to the pre-cooling

units, pre-cooled and stored in cold storage. Pre-cooling and cold storage of fruits

under optimum storage conditions helps in reducing the gross post-harvest losses

of 27%.

30. During the last decade, the pre-cooling technology has been introduced in

Maharashtra especially, in Nashik and Sangli districts with the objective of export

of grape and other fruits and vegetables grown in those areas. The technology

involves rapid removal of field heat by storing the fruits in pre-cooling rooms

immediately after harvesting. Generally the pre-cooling units follow forced air-

cooling. The fruits are pre-cooled to 4-5oC within a period of 5-6 hours. The ideal

conditions for storage of grape is as follows :

31. Temperature : -5 oC to 0 oC

32. Relative Humidity : 85-90%

33. Storage period : 3.8weeks ANNEXURE - XII

34. Technology of Raisin Making

35. Raisin production is one of the important activities being undertaken in Nashik

and Sangli districts. In Sangli, mainly farmers (grower processors) undertake

raisin production activity themselves and market raisin in the open sale to traders

in local market, whereas in Nashik mainly the traders (trader / merchant-cum-

processor) procure fresh grapes from the farmers and produce raisins themselves

for marketing. Generally two types of drying sheds are constructed i.e. Temporary

sheds made of bamboo sticks (Kacha sheds) and Permanent sheds (Pucca sheds)

constructed with cement and angle iron. Kucha sheds need to be fabricated every

year. For production of quality raisins, grapes are harvested, graded, washed and

dipped in a solution containing 1 litre of Ethyloleate and 2.0 Kg of Potassium

carbonate (K2CO3) per 100 litre of water (pH 9.5-11.0) for 3-5 minutes. Bunches of

grapes are spread over nylon nets @ 1-1.5 Kg per sq.ft. After 2-3 days, bunches

are sprayed with the above solution at 1/3rd concentration. Some manufacturers

give sulphur fumigation treatment @ 3g per Kg for 3 hours after dipping the grape

in above solution to produce yellow colour raisins The drying is complete within

15-21 days depending upon different weather conditions. The raisins are

collected, sorted and graded for colour before packing. Some producers sell

raisins in the open market, whereas others may store them in cold storage for

subsequent marketing.

36. ANNEXURE - XIII

37. Technology of Wine Making

38. Government of Maharashtra has declared processing of grape to wines, juice etc.

as a thrust area. The farmers both in Sangli and Nashik districts are well aware of

the importance of processing of grape to value added products. But the lack of

suitable varieties for processing of grape to juice, wine etc. is the stumbling block

in this direction. Further, since the wine requires long ageing period, the units

face difficulty in recycling the working capital. NRC grapes, Pune is actively

involved in identification and collection of varieties for production of juice and

wine. National Chemical Laboratory has reportedly standardized a technology for

preservation of juice from grape using membrane filtration technology. Some

progressing farmers have planted 7-8 varieties suitable for production of wine and

juice on experimental basis in Sangli district. Nashik district is playing a leading

role in production of wine and a few units have already been set up in the district.

A unit set up in Narayangaon for production of sparkling wine is based on contract

farming.

39. A standard method of production of wine is followed world over. The grapes are

harvested at optimum maturity (TSS >21oB), transported to winery, washed and

crushed in a hydrolic press to extract juice. The extracted juice is chilled at 4oC to

allow the sediment to settle. The clear juice is separated out, fed to the

fermentation tank and inoculated with Saccharomyces cerevicea after adjusting

the pH of the juice to a desired level. After the fermentation is over, a small

amount of sulphur-dioxide is added as preservative. The excess potassium

tartarate, known as cream of tartar is precipitated out. The clarified wine is filled

in sterile bottles / ageing vat made of oak wood and left for ageing. In order to

produce sparkling wine, 1.5% sugar is added to the wine before bottling. The

bottles are inoculated with alcohol resistant strains of the yeast to induce second

fermentation in the sealed bottles. This fermentation takes nearly 2 months.

Base parameters      

Average productivity

(t/ha) 25

Unit cost with Dogridge root stock

(Rs lakh / ha) 4.2225

Export price (Rs./

tonnes) 45000

Unit cost with Dogridge root stock

and reclamation of soil (Rs lakh /

ha) 169065

Domestic price (Rs/

tonnes) 15000

Unit cost of precooling and

postharvest centre 50.142

Price of raisin

(Rs./tonne) 70000 Unit cost of raisin making shed 1.58

Price of other products

(Rs./tonne) 50000    

    Recovery of products 40%

Man days      

Grape production per ha      

1 yr 565    

2 yr 875    

3yr 1062    

       

Raisin production per

tonne 60    

Raisin production per

unit (tonnes) 2.5    

Mandays per unit 150    

       

Precooling unit (per

tonne) 70    

       

Handling per season

(tonnes) 200    

Mandays per unit per

season 14000  

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