Area Development Project on Grape in the Agri

8/7/2019 Area Development Project on Grape in the Agri

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Area Development Project on Grapein 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) forsometime 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:


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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 :

y During the period from 1991 to 92 to 1999-2000, the increase in production of grape hasshown annual compounded growth rate of 13.36% in Maharashtra.

y Among all the fruit crops, grape has emerged as the most successful commercial crop inthe recent years.

y 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.

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


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y The quality of grape grown in India is comparable with the best in the world, sinceThompson 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.

y Besides use of grape as fresh fruit, it could be processed to value added products such ascanned grapes, raisin, juice and wine. The by-products from processed grapes such as

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

y Grape of India is highly competitive in the international market because of its highproductivity, good quality and also lower cost of production (being very labour intensive

crop).

y Investment requirement is much higher for grape than any other crop, the unit cost beingRs.3.64 lakh per ha. ( in Maharashtra) for high density plantation, which necessitates

institutional finance.

y 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.

y Grape is perhaps the only crop in India which is not usually grown by any farmer withoutrecourse 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


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(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 :

y Development of new varieties enabling extension of marketing season.y Application of post harvest technology .y Large investment in marketing infrastructure.y Adoption of quality control measures right from planting to export.


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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 :

y Cultivation of Thompson seedless variety of grapes.y Grape cultivation is largely in the hands of progressive and well-to-do farmers.y 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.

y Adoption of scientific post harvest management which includes use of sulphur dioxidereleasing pads, grading, packaging, pre-cooling, cold storage and refrigerated

transportation.

y Availability of institutional credit.y Farmer friendly State Government policies specially in the states of Maharashtra and

Karnataka.

y Incentives in the form of subsidy from National Horticulture Board( NHB), Agricultureand 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 :


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y Dependence on single variety i.e. Thompson seedless grape which has small berry sizeand production season is short.

y Inadequate and high cost post harvest management technologies.y Lack of diversification in utilisation of products such as juice, wine and canned grape is

still not significant.

y Grape is still considered luxury fruit and consumed by only the affluent section ascompared to other fruits.

y Protective measures by the developed countries such as USA and EU for import,specially during their production season.

y Production of wine from grape is still non-priority item and treated on par with alcoholicdrinks, 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:

y Agro climatic diversity for grape cultivation to sustain productivity.y Technology available to achieve the highest productivity in the world.y Scope to grow grapes almost throughout the year excluding November and December.y Possibility of double cropping.y Technology available to produce world class grapes.y Technology to produce good quality raisins.y Concentration of grape cultivation in clusters facilitating development of infrastructure,

marketing and adoption of technology.

Weaknesses:

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

y Limited harvesting season for export


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y Short period of cropping in sub-tropical places (February to April).y Production of export quality grape is low (only 15% of the production).y Inadequate network of cool chain.y High air freight.y Too many exporters.y Susceptibility of the varieties to cracking, rotting, pink berry formation and mildew

diseases.

Opportunities:

y New varieties for off-season / early harvesting.y Improvement in North Indian varieties for expanding the season.y Development of less expensive training system.y Development of cultural practices for autumn cropping in sub-tropical places of North

India.

y Development of varieties resistant to downy and powdery mildew diseasesy Improvement of size, colour and packingy Exploring south-east Asian markets for exports.

Threats:

y Rains during fruit ripening in North India.y Increasing soil and water salinity.y Barrenness of vines and coulure (flower and flower bud drop) in North India.y Decreasing ground water resources and drought..y Heavy spray schedule with potential of pesticides residues.y Chile and South Africa have extended their season by growing early and late varieties.y Fluctuation in international price.

7. Objectives of the Project:

The objectives of the present project are as under :


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y To promote development of grape cultivation specially for export with institutionalfinance.

y 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.

y To promote use of scientific production and post harvest management technologies forincreasing 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).


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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


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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 :

y Irrigationy Nurseryy Cold chain facilitiesy Transport

11.2.1. Irrigation :


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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


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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 schemesare 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 19,616ha. 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 irrigationinclude drip, sprikler and irrigation.

11.2.2. Nursery:


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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:


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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 identifiedgrape 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


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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


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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:


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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 theAnnexures-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.


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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 progressiveand 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 :

y Merchant Exportersy Farmer Exporters andy 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


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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


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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 :


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y Establishment of post harvest infrastructure upto 50% of the capital cost with ceilingvarying from Rs.75 lakh to 200 lakh depending on type of organisations, areas, etc.

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

y 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.

y Scheme for development of manpower requirements covers the cost of training as alsocreation of infrastructure facilities and get an assistance ranging from Rs.2 lakh to50

lakh.

y 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.

y Scheme for setting up Modernisation/Expansion of Food Processing Units with assistancevarying from Rs.25 to 50 lakh.

y Scheme for setting up of mobile fruit and vegetable processing unit with assistance uptoRs.60 lakh.

Govt. of Maharashtra:

Government of Maharashtra through Maharashtra Industries Development Corporation provide

the following incentives / facilities :

y 25% of capital cost of pre-cooling, cold storage, refrigerated van, etc. subject to a limit ofof Rs.30 lakhs.

y Reservation of plots in industrial estates for setting up of a pre-cooling and cold storageand also Sales Tax concessions are extended to these units.

y 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.

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


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y Maharashtra has announced grape processing policy for 2001 under which variousincentives 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 :

y Hastening of ripening in Pusa Seedless.y Coulure (drop of flower buds, flowers and young berries) in North Western plains.y

Pink berry formation in Maharashtra.y Uneven ripening in Beauty Seedless and Gulabi.y Post harvest berry drop in Anab-e-Shahi.y Lack of superior varieties for raisin making.y Lack of seedless varieties with bold berries of good quality.y Lack of cultural practices to increase the firmness of berries to withstand transport to

long distant markets.

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


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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 :

y 20,000 members cultivating grapes.y Managed by elected body of grape growers.y Co-operative body registered under Public Trust Act.y Four officers in major grape growing areas to provide services to grape growers.y

Organisation has a well-maintained demonstration farm and nursery facility at Manjari.y Arrangement of seminars, field training programmes, visits of scientists etc.y Well-equipped laboratory to analyse soil, water and petioles for fertigation schedules.y Representations to various ministries in the state and central governments to plead the

case of grape growers.

y 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


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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).

Grapes Annexures

Documents

Area Development Project on Grape in the Agri