As the All India Wine Producers Association plans to take Indian wine to the world market strengthening network of grape grower farmers and market linkages, the industry is facing stiff opposition on its home turf – Maharashtra.
Wine production in India is concentrated mostly in Maharashtra’s Nashik district. Recently, the Maharashtra government has decided to permit the sale of wine at supermarkets and shelf-in-shops.
Social activists are agitated with the government’s support to the wine industry and allege that the government is promoting “alcoholism”.
Wine industry players say that a fake narrative is being spread against the industry which has the potential to dominate the world market and change the agri-economy scenario across States in India.
According to Jagdish Holkar, the president of the All India Wine Producers Association, the backward linkage of the industry goes to farmers who will get benefits if the industry flourishes. Hundreds of farmers in the Pune and Nashik region of Maharashtra are in contract farming with wineries. Along with grape farmers, the association is looking forward to increasing the presence of fruit wine and plans to establish a research institute to support the industry. The industry is elated with the government of Maharashtra’s support in marketing.
Activist Anna Hazare will start a hunger strike against the government from next Monday and the State BJP unit is already agitating against the government’s decision. Hazare has announced that he will not withdraw his hunger strike till the government of Maharashtra withdraws its decision of allowing sale of wine in supermarkets.
Wine Economy
Maharashtra leads in grape production countrywide, accounting for 81.22 per cent. However, wine grapes are not even 3 per cent of the total production.
Maharashtra State Grape Grower Association (MSGGA), the apex body of grape farmers has fixed the Minimum Support Price for the export quality grapes. The export rate at a minimum of ₹82 per kg in January, ₹71 in February, and ₹62 in March.
Association members calculated the price based on 10 per cent profit on the production cost. However, exporters are not ready to provide this rate. The price of grapes in domestic market is much less compared to the export grapes.
Growers of wine varieties generally receive about ₹45–70 per kg for the produce and farmers have an assured source of income.
“The wine companies are into contract farming for decades now and farmers don’t have to look for the customer and face fluctuation in the market” said Santosh Bane, a farmer in Nashik.
The association is trying to rope in farmers and industrialists from Karnataka, Andhra Pradesh Tamil Nadu, and other States for developing new wine varieties.
According to industry players, out of approximately three crore litres of wine sales in India, about one crore litre comes from Maharashtra and the State has more production potential but needs market support.