The Indian Grape Processing Board (IGPB) is pushing for a Wine Development Fund ( WDF) on the lines of the Sugar Development Fund to deal with natural calamities and bail the industry out in times of crisis. A proposal to this effect is expected to be tabled at the next board meeting of the IGPB to be held at Nashik on March 22, Jagdish Holkar, chairman, IGPB said.
?The recent rains and hailstones in the state have badly affected grape crop causing damage to the tune of 20-30%. This in turn is likely to affect wine production for the season of 2014-15 where crushing is still in progress. The impact will be known during the next crushing season and there is every likelihood of a shortfall,? Holkar said. In the next season, there will be more demand than supply since grapes will be in short supply, he said.
The crushing season of wine grapes is usually from February till March. This year, the total crushing in the country is expected to be about 40,000 tonnes, including the crushing of the table grapes ? Thompson and Bangalore Purple ? which are used for manufacturing grape spirits with an increase of about 20% over the previous year.
The rains in grape-growing regions including part of Nashik, Baramati and Sangli, have affected grapes that are also used for grape spirit, he said.
Even as the industry was slowly getting back on its feet with expectations for an increase in demand for the wines in 2014, there have been reports of about 50% of the area under wine grapes in Maharashtra being uprooted in the state due to oversupply in the past. Maharashtra accounts for 65% of the grape cultivation in the country.
The Sugar Development Fund of the ministry of food, public distribution and consumer affairs provides loans for facilitating the rehabilitation and modernization of sugar mills across the country. According to Holkar, the establishment of such a fund would help reach out to units in trouble especially in times when natural disaster strikes.
With the rains, the grape quality gets affected but sometimes crop insurance becomes an issue and restructuring of loans also becomes an issue at times, Holkar said.
During such uncertain calamities, wineries could receive support with through the establishment of such a fund, he said. The framework is yet to be worked out and the concept may take some time to be formulated in a proper manner, he added.
