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 deve loping 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 y y y y 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. y 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. y y 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. 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 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 CAG for the export of R 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 y y y 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 : y y y 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. y y y y 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 : y y y y y y 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: y y y y y y y 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: y y y y y y y y 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: y y y y y y y 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: y y y y y y y 7. 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. Objectives of the Project:

The objectives of the present project are as under : y y y 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 Per Capita Availability 750 (g/year) Area under cultivation 43 ('000 ha.) Production Tonne) Productivity (t/ha.) Raisin (' 000 t) ('000 t) 25 22 (Million 1.1

By 2020 1,200 70 2.24 32 50 50

Export of table grape 21

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 nontraditional districts also. 11. 11.1 Infrastructure facilities: 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 t e data h 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 y y y 11.2.1. Irrigation Nursery Cold chain facilities Transport 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 producti ity in the world. A gist of v 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 Financial (Ha.) Outlay (Rs.in lakh)

2002-03 2003-04

2,633.32 2,838.53

11,119.19 11985.69

200405 Total

3,059.73

12919.72

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 centr have been worked out, are given in the es Annexure-XV.

The year-wise projected requirement of post harvest centres and financial outlays are as under: Year 200203 2003-04 200405 Total 14 14 38 702 702 1,905 Physical outlay(no) 10 Financial outlay(Rs.lakh) 501

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 2002-03 2003-04 2004-05 Total

Physical outlay(No) 386 483 595 1464

Financial outlay(Rs.lakh) 610 764 941 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 2002-03 2003-04 2004-05 Total TFO 12,231.01 13,451.2 14,562.3 40,244.51 Bank loan 10,285.18 11,286.97 12,213.7 33,785.85 NB refinance 9,256.66 10,158.27 10,992.33 30,407.26

17.

Unit Cost:

The unit cost of the various items of development are as under: Area Expansion Drip Irrigation Reclamation of Salinity Rs.3.64 lakh per ha Rs.0.58 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 : y y y 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 Sugar context Berry size Bunch weight (Loose bunch) 21. Price: : : : : Greenish yellow 16 - 20o bric 4-5 gms. per berry 350 - 500 grams

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 2000 2001 2002 0.90 1.40 0.87 High 1.10 1.60 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 fea sibility 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 : y y 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.

y y

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.

y y

Govt. of Maharashtra: Government of Maharashtra through Maharashtra Industries Devel pment Corporation provide the o following incentives / facilities : y y y 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. y y 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 : y y Hastening of ripening in Pusa Seedless. Coulure (drop of flower buds, flowers and young berries) in North Western plains.

y y y y y y y y

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 : y y y y y y y y y 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 p lay 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 Nashi k 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 4-5o C 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 win e 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 >21o B), transported to winery, washed and crushed in a hydrolic press to extract juice. The extracted juice is chilled at 4 oC 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 inoculat ed with alcohol

resistant strains of the yeast to induce second fermentation in the sealed bottles. This fermentation takes nearly 2 months.

Base parameters Average (t/ha) Export tonnes) Domestic tonnes) Price (Rs./tonne) Price of other products (Rs./tonne) 50000 Recovery of products Man days Grape production per ha 1 yr 2 yr 3yr 565 875 1062 40% of raisin 70000 Unit cost of raisin making shed 1.58 price (Rs/ 15000 price (Rs./ 45000 productivity 25 Unit cost with Dogridge root stock (Rs lakh / ha) Unit cost with Dogridge root stock and reclamation of soil (Rs lakh / ha) Unit cost of precooling and 50.142 postharvest centre 169065 4.2225

Raisin tonne Raisin

production production

per 60 per 2.5 150

unit (tonnes) Mandays per unit

Precooling tonne)

unit

(per 70

Handling (tonnes)

per

season 200 14000

Mandays per unit per season

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