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K.V. Kurmanath

`If we have a wine policy, it would solve the marketing problem for the farmers.'

Hyderabad May 1 With Karnataka emulating Maharashtra in announcing a Wine Policy, grape farmers and wine lovers in Andhra Pradesh too want the State Government to come out with a similar policy here, facilitating farmers to get higher price realisation.

Though endowed with the right conditions, the State hardly produces any wine variety of grape.

With the total area of grape gardens likely to grow substantially from the present 15,000 acres by 2015, the farmers feel that it is the right time to announce a policy as it would help them go for wine varieties.

The State produces 1.5 lakh tonnes of which 1,500 tonnes are exported.

Low export volumes make the farmers depend more on the domestic market, which gives them only marginal returns.

As if this is not enough, the marketing network is unorganised, forcing the farmers to depend on the highly fragmented marketing channels.

Keeping in mind the projected expansion of grape area, farmers and exporters feel that it is the right time to come out with a policy.

"It is estimated that investments to the tune of Rs 1,400 crore, including Rs 1,000 crore institutional credit, will be deployed into the industry by 2015," a leading grape exporter told Business Line. Wine varieties offer farmers a price of Rs 30-35 a kg as against Rs 10-12 a kg for the present Table grapes.

Stating that the existing varieties give farmers a net profit in the range of Rs 10,000- 20,000 an acre, he said wine varieties would give a net profit of Rs 50,000-75,000 an acre.

"If we have a wine policy facilitating for setting up wineries, it would solve the marketing problem for the farmers. The contracted grapes would directly go to wineries, removing uncertainties and prospect of distress sale for farmers," he said.

Mr Balaji Rao B.K., President of Hyderabad Wine Club, pointed out that a policy would encourage the farmers to grow wine varieties in Andhra Pradesh, which is backed by excellent agro climatic conditions for viticulture, or cultivation of grape vines.

If the State Government fails to introduce a policy, farmers are worried that wine-makers might go to the neighbouring Karnataka, which has just come out with a policy that declared wineries as `horticultural and food processing industries'.

While simplifying rules to acquire land for wine varieties, the Karnataka Government announced plans to set up two Wine Parks - one in Nandi Valley and another in Krishna Valley. Besides setting up a Grape Processing Industries Board, the Government announced subsidies and assistance to companies that would go in for contract cultivation.

"Once we lose the first player advantage, it is difficult to attract investments," a Grape Growers' Association leader felt.

Suggestions

Calling for a policy formulation, Mr P. Chengal Reddy, Chairman of Confederation of Indian Farmers' Association suggested that wineries should be declared as a food processing industry.

More Stories on : Horticulture/Fruits & Vegetables | Breweries | Andhra Pradesh

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