GRAPE (2024)

GRAPE

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<![if !supportLists]>1.<![endif]>INTRODUCTION

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Grape (Vitis sp.) belonging to Family Vitaceae is a commercially importantfruit crop of India. It is a temperatecrop which has got adapted to sub-tropical climate of peninsular India.

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<![if !supportLists]>2.<![endif]>OBJECTIVE

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The primary objective of this exerciseis to support commercial cultivation of grapes by projecting a one acrebankable model project. The high yieldof grape is limited to a few vineyards and is not consistent throughout thelife - span of the crop. In order toget uniformly high yields with good quality fruit, the basic principles ofviticulture needs to percolate down toall the growers.

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Peak production during March-Aprilmonths leading to glut in the market and poor quality of grapes resulting intremendous post-harvest losses are other problems which limit profits. Growersneed to be educated on means of extending harvest over a longer period to getbetter price for their produce and to minimize market risk.

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<![if !supportLists]>3.<![endif]>BACKGROUND

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<![if !supportLists]>3.1 <![endif]>Origin

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Grape cultivation is believed tohave originated in Armenia near the Caspian Sea in Russia, from where it spreadwestward to Europe and eastward to Iran and Afghanistan. Grape was introducedin India in 1300 AD by invaders from Iran and Afghanistan.

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<![if !supportLists]>3.2 <![endif]>Area & Production

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India is among the first tencountries in the world in the production of grape. The major producers of grapeare Italy, France, Spain, USA, Turkey, China and Argentina. This crop occupies fifth position amongstfruit crops in India with a production of 1.21 million tonnes (around 2% of world’sproduction of 57.40 million tonnes) from an area of 0.05 million ha. in 2001-02.The area under grape is 1.2 % of the total area of fruit crops in thecountry. Production is 2.8% of totalfruits produced in the country. About 80% of the production comes fromMaharashtra followed by Karnataka and Tamil Nadu.

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The area and production trends ofgrape during the period 1997-98 to 2001-02 are depicted in Graphs-1 & 2.

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State-wise area, production and productivityof grapes are given in Table-1 below.

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Table-1: State-wise Area, Production & Productivity of Grapes during2001-02.

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Source:Database of National Horticulture Board, Ministry of Agriculture , Govt. ofIndia.

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Variety-wise break-up of the area is as below:

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<![if !supportLists]>3.3 <![endif]>Economic Importance

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The fruit contains about 20% sugarin easily digestible form besides being rich in calcium and phosphorus. World over it is grown mainly for wine making(82% production), raisin making (10% production) and rest for table purpose(8%). In India, however it is mostly consumed as fresh fruit and only a limitedquantity is utilized for the production of liquor, dry fruits like raisins etc.

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<![if !supportLists]>4.<![endif]>MARKET ANALYSIS AND STRATEGY

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<![if !supportLists]>4.1 <![endif]>Demand and Supply Patterns

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The contribution of India in foreigntrade of grape and its processed products is meager, although, export of freshgrape from India is on the increase. Theshare of Indian grape in the imports of the European countries (U.K., Germany, France,Netherlands) and Asian countries (Japan, Singapore, Hong Kong and China) needsto be increased.

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Varieties in demand in international markets include Thompson Seedless, Emperor, Ruby Seedless, Red globe, Christmas rose, Crimson Seedless, Calmeria, Rouge Ribier, Exotic, Fantasy Seedless. Several varieties such as Thompson Seedless, Flame Seedless, Shared Seedless, Tas-A-Ganesh and Sonaka, that are currently in demand in the international markets, are produced and exported from India. However, seeded varieties that are demanded in USA and Italy markets are not produced in India. To tap this potential, there is a need to increase area under seeded varieties of grapes.

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The wine trade has enormous potential. With the support of Govt. policies India can make a mark in wine industry at global level.

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‘Mahagrapes’, a co-operative partnership firm established in 1991, with the support of Maharashtra State Agricultural & Marketing Board (Pune), NCDC (New Delhi), Govt. of India, National Horticulture Board (Gurgaon, Haryana) and APEDA has established itself as a major organization exporting quality grapes from India to European Union and Middle East markets. It has succeeded in establishing its brand name in the highly competitive and quality conscious international markets.

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<![if !supportLists]>4.2 <![endif]>Import / Export Trends

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The major exporters are Italy,Chile, USA, S. Africa, Spain, Greece, Netherlands etc. The major importers ofgrapes are USA and Germany followed by France, U.K., Canada, Netherlands andHong Kong.

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Fresh grapes are being exported fromIndia to about 30 countries including U.K., Netherlands, U.A.E., Bangladesh,Germany, Belgium, Saudi Arabia, Oman, Kuwait, Sri Lanka, and Bahrain. The trend in export of fresh grapes duringthe period 1999-2000 to 2002-03 is given in Graph-3. The export statistics of fresh grapes fromIndia during 2001-02 is presented in Table-2.

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About 100 metric tonnes of grapeswere imported during the period 1999 to 2002, at an average per kg. price ofRs.50.38. These were mainly imported from Afghanistan (37%), USA (15%),Australia (12%), Vietnam (11%), New Zealand (7%), Singapore (6%) and China (5%).Besides, small quantities were imported from South Africa, Iran, Syria, Turkey,Pakistan and Bangladesh.

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<![if !supportLists]>4.3 <![endif]>Analysis and Future Strategy

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Production currently is much higherthan demand in the domestic market.There is need to promote export of grape and its products to sustainpresent production trend. Otherwisegrowers can incur heavy financial losses.

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Till recently export of grapes fromIndia was mostly confined to neighbouring countries due to inadequatepre-cooling facilities and consciousness about quality as well as residues ofpesticides by countries like U.K., USA, Germany, Canada & Switzerland.

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We have now taken adequate measuresto ensure prescribed pesticide residual limits in the grapes produced in thecountry. To boost exports regularguidance is being given to the farmers and their co-operative societies ondifferent aspects e.g. pre-harvest, proper use of pesticides, post harvest, packaging,pre-cooling, cold storage and transportation. There is a need to increase theshare of Indian grape in the imports of European countries like U.K., Germany,France and Netherlands where higher prices can be fetched. There is also potential for increase in theexport of Indian grape to Asian countries like Japan, Singapore, Hong Kong andChina in which prices are very high.

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<![if !supportLists]>5.<![endif]>PRODUCTION TECHNOLOGY

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<![if !supportLists]>5.1 <![endif]>Agro-climatic Requirements

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Grapeis a versatile crop that can adjust to any type of climate. The ideal climateis in the Mediterranean region. In Europe, America, Australia and Russia, it isgrown under temperate conditions, while in Afghanistan, Iraq, Iran, China,Pakistan, Israel and North India it is grown under sub-tropical conditions. Itis also cultivated under the tropical climatic conditions of Chile, Argentina,Venezuela, Kenya, South and West India.

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Sandyto clayey and loamy soil with good drainage and irrigation facilities issuitable for the cultivation of Grapes. Soils having pH value from 6.5 to 7.5are most suitable.

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Inits natural habitat, the crop bears fruit during the hot and dry period and undergoesdormancy during the period of severe cold. It tolerates frost during restingstage but is very susceptible during growing period. Temperature ranging from15-35⁰ C is ideal for shoot growth and normal physiologicalprocesses of the grapevine. Vines do not grow and fruit well when thetemperature falls below 10⁰ C.

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Locationswhere the annual rainfall does not exceed 900 mm. are ideal for itscultivation. More than the amount ofrainfall received during a year, the number of rainy days in a year and theoccurrence of rains in relation to the stage of growth of the vine is important.Humidity associated with rains duringflowering and fruit ripening is not favourable and invites the attack of fungaldiseases.

<![if !supportLists]>5.2 <![endif]>Growing and Potential Belts

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Maharashtra (Nasik, Sangli,Ahmednagar, Pune, Satara, Solapur and Osmanabad Districts) ranks first in theproduction of grape followed by Karnataka (Bangalore, Kolar, Bijapur), TamilNadu & Andhra Pradesh (Rangareddy, Medak, Ananthapur). In these States, grapeorchards bear two crops in a year resulting in exceptionally high yield. Fruit quality is however poor.

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In north India, grape is cultivatedmainly in Punjab, Haryana, Himachal Pradesh, and Uttar Pradesh. Vegetative growth takes place only in the springseason; consequently the fruiting is only once in a year during the summermonths.

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<![if !supportLists]>5.3 <![endif]>Varieties Cultivated

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Region-wise list of varieties cultivatedis given in Table-3 below.

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Table-3: Varieties cultivated in different region of India.

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List of commercialvarieties utilized for specific purposes is given in the following:

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Commercial varieties can be groupedunder four categories based on colour and seeds:

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<![if !supportLists]>5.4 <![endif]>Land Preparation

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Land is leveled by a tractor or bulldozer as per the requirement, soil type and gradient. In case of drip irrigation, leveling need not be perfect. 

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The size of the plot will vary with the type of training system used. In case of bower and telephone or “T” trellis the ideal size could be 60 X 80 m. and 90 X 120 m. respectively. 

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<![if !supportLists]>5.5 <![endif]>Planting

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Grapeis usually propagated by hard wood cuttings, though propagation by seed, softwood cuttings, layering, grafting and budding is also used in some cases.

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The grapevines are usually planted in pits. The size of the pit depends upon the spacing of the vines and also on the specific requirements of the variety. The depth may vary from 60 to 90 cm. depending upon the soil type. Wider spacing (1.2 m. X 1.2 m.) is required in case of vigorous varieties like Anab-e-Shahi and Bangalore Blue. A little less than that (i.e. 90 X 90 cm.) is required in case of varieties viz. Thompson Seedless, Perlette and Beauty Seedless. In central Maharashtra and northern parts of Karnataka the spacing adopted for Thompson seedless and its mutants is 1.8m X 2.4 m. The pits need to be opened about a month before planting. 

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Planting is usually avoided during the rainy season. The best time for planting is February-March in North India, November-January in the peninsular India. In Karnataka and Tamil Nadu it is usually planted during December-January, due to the fact that rainy season lasts upto end of November.

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Growthof the plants starts 10-15 days after planting, depending upon the season ofplanting. Growth occurs earlier in case of those planted during warm season as comparedto those planted in cold season. Afterone month of planting, the young plants need staking and training.

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<![if !supportLists]>5.6 <![endif]>Training Systems

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In India systems like bower, kniffin, telephone, head and slanting trellis have been tried in the past, but the bower & telephone system are being followed on a large scale. About 80% of the vineyard area in India is on bower system. 

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The training system and intensity of pruning recommended for different varieties is given below:

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Varieties

Distance of planting

System of training

No. of canes to be left on each vine

No. of buds to be left per cane

Thompson Seedless

2 x 3

Kniffin

16-20

8-10

Beauty Seedless

2 x 2

Head

16-20

3-4

Anab-e- Shahi

3 x 6

Arbour

60-80

5-6

Perlettee

3 x 3

Head, Kniffin 

30-40

3-4

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<![if !supportLists]>5.6.1 <![endif]>Bower

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This system is most widely used in commercial cultivation of grapes and particularly for the vigorous varieties with high degree of apical dominance. As the shoots start growing from the newly –planted rooted cuttings in the main field, only the best shoot growing vertically is allowed to grow along the stake provided upto the bower height. 

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<![if !supportLists]>5.6.2 <![endif]>Kniffin (also called Espalier System)

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The system is less expensive than Bower, yet it is less commonly followed. It is suitable for training moderately vigorous varieties having less degree of apical dominance. Close planting of vines within a row at spacing of 1.80 to 2.40 m. depending upon the vigour of the plant is followed keeping the row to row distance at 3 meters. As in the case of Bower, the vigorous and vertically growing shoot is trained along the vertical support. 

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Advantages of Kniffin System over Bower System:

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<![if !supportLists]>· <![endif]>Less expensive

<![if !supportLists]>· <![endif]>Disease incidence and spread is less.

<![if !supportLists]>· <![endif]>Easy to carry out spraying and other cultural operations.

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The main drawback is that yield is about half of what is obtained on bower system. Though the vine canopy is exposed to light, the lower laterals are less productive due to shading by the foliage on the upper laterals. Damage to the branches is more due to sunburn and birds. 

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<![if !supportLists]>5.6.3 <![endif]>Telephone System

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T-trellis is used in this system of training. It is a mini discontinuous bower with shoots hanging downwards with three topped wires and T-shaped support, the trellis looks like a telephone pole and wires. It is as expensive as kniffin system and is suitable for moderately vigorous varieties with slightly more apical dominance. 

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Advantages of Telephone System over Bower System:

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<![if !supportLists]>· <![endif]>Better ventilation and light interception

<![if !supportLists]>· <![endif]>More convenient to carry out cultural operations and spraying

<![if !supportLists]>· <![endif]>Less expensive

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Disadvantages of Telephone System over Bower System :

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<![if !supportLists]>· <![endif]>Less yield as there is no provision for developing as many number of canes per unit area as in Bower.

<![if !supportLists]>· <![endif]>During summer months, sunburn of berries is observed in very hot and dry places.

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<![if !supportLists]>5.6.4 <![endif]>Head System

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This is the least expensive of all the training systems. It is suitable for less vigorous varieties with less degree of apical dominance and for those in which the basal buds in a cane are fruitful, such as Beauty Seedless, Delight and Perlette in North India and Gulabi in South India. Plants are spaced very closely to accommodate about 4000 – 4500 plants per ha. with a spacing of 1.80 m. and 1.20 m to 1.50 m between the rows and within a row respectively. The vines are supported to vertical stakes of eucalyptus or bamboo poles of 1.50 m. length. These supports are fixed very close to the vine 30 cm. deep in the soil leaving 1.20 m above the ground.

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The return on investment made is less as compared to the Bower system. Size of the berries produced on this system is larger as compared to that of other systems. Incidence of diseases is much less on this system.

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<![if !supportLists]>5.7 <![endif]>Pruning

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The prevailing pruning practices in India can be broadly grouped into the following categories:

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<![if !supportLists]>(i) <![endif]>Single Pruning- Single cropping 

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This system is prevalent in North India. Since only one growing season is available, grapevines are pruned with the onset of spring or during late winter (mostly January-February). Floral differentiation on the current shoots and the fruit set take place simultaneously. If all the bearing shoots are retained on the vine and pruned in the next winter for fruiting, the fruiting wood multiplies faster and the vine canopy becomes denser year after year, leading to barrenness within just 3 to 4 years. In order to regulate vine canopy and extend its productive life span, half of the mature shoots are pruned for fruiting and the other half are pruned for renewing the spurs to give rise to shoots that develop into fruiting canes for the next year. Alternatively, the fruiting canes are pruned back to renewal spurs and the mature shoots developed from the previous spurs are pruned to fruiting canes year after year.

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<![if !supportLists]>(ii) <![endif]>Double pruning – Single cropping 

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This system is predominantly followed in Maharashtra, north interior Karnataka in case of Thompson Seedless, and Andhra Pradesh on Thompson Seedless and Anab-e- Shahi grapes. After harvest in summer, the vines are forced to undergo rest for about a month, during which period water is withheld to help concentrate the reserves in the mature parts of the vine. All the fruiting canes are pruned back to spurs retaining only one basal node. This is called as “back pruning “or “foundation pruning” or “summer pruning “. Buds on the shoots growing from these spurs differentiate into floral primordial and the shoots mature in about five months. These mature shoots are pruned for fruiting before the onset of winter (September- October). This pruning is called “forward pruning” or “fruit pruning” or winter pruning”. All the mature shoots are subjected to fruit pruning. Thus, in this system of pruning, a cycle of two prunings resulting in one crop is practiced.

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<![if !supportLists]>(iii) <![endif]>Double pruning – Double cropping 

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This system is in vogue in Anab-e-shahi and Bangalore Blue grapes in the south interior Karnataka and in Anab-e- Shahi, Bhokri and Gulabi in Tamil Nadu. Barring Bangalore Blue, the pruning practices in other varieties are common. Mature shoots are pruned to canes of 7-8 buds after harvesting the crop in summer. The mature shoots arising from these 3-4 buds along spurs are pruned for fruiting canes in the next winter. In the Madurai region and other parts of Tamil Nadu, pruning is done during November-December for summer crop harvested during March-April, and during May-June for the second crop harvested during August-September. In the south interior Karnataka, the forward pruning is done during October-November for summer crop harvested during February-March and during April-May for the second crop harvested during July-August. In Bangalore Blue, the recently mature shoots are pruned to 3-4 nodes at every pruning. There is no alternative system of backward and forward pruning in this variety. Only forward pruning is practised. Time of pruning could be any time of the year excepting December. In this variety, the crop is harvested about 5 months after pruning. As a result, three crops are harvested in two years, and the crop is harvested almost throughout the year.

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<![if !supportLists]>5.8 <![endif]>Shoot Pinching

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Shoot pinching is mainly done to regulate the growth, and provide better ventilation and light interception into the vine canopy. Shoot pinching is done during the growth as well as fruiting seasons in peninsular India but only during the fruiting season in North India and other temperate regions as there is only one growing season in these regions.

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<![if !supportLists]>5.9 <![endif]>Irrigation

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Irrigationpractices vary considerably in different regions of India depending upon therainfall pattern, time of pruning, different growth stages, water-holdingcapacity of soil, variety grown, training system followed and spacing of vines.Irrigation is provided once in every three days in newly planted vineyards byallowing water into a small circular basin of 50 cm. radius. With the increasein growth rate the size of the basin increases to a radius of 2m. In case ofdrip irrigation, only one emitter is placed at the base of the vine. The numberof emitters gradually increases to two and then four which are shifted about 30or 40cm. away from the stem depending upon the variety and spacing of thevines. Heavy irrigation is provided soon after pruning in order to wet theentire root zone thoroughly and induce active growth in the vine. Lightirrigation of 50-75mm. (5.0-7.5 L./ha.) is given is given at an interval of10-12 days during winter and 5-7 days in summers. In the event of rainfallduring that interval, the next irrigation is either omitted or delayed.Irrigation frequency is reduced during anthesis, fruiting stage and also afterberry softening to improve fruit quality.

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<![if !supportLists]>5.10 <![endif]>Nutrition 

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Recommended doses of nutrients for different varieties under different agro-climatic regions are given in table below:

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Table-4: Recommended nutrient doses (kg./ha.) for different varieties of Grape

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Variety

Region

N

P2O5

K2O

Anab-e-Shahi

North India

366-600

300-550

183-1200

Telangana

435

305

784

South interior Karnataka

500

500

1000

Beauty Seedless

North India

165

-

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Cheema Sahebi

Maharashtra

600

240

120

Gulabi, Himrod,

Perlette

North India

444-715

457-1332

460-1000

Thompson Seedless

North India

444-1100

1332

1332

Maharashtra

666-1000

500-888

666-800

South interior Karnataka

300

500

1000

Source: The Grape Improvement, Production & Post-harvest managementby K.L. Chadha, S.D. Shikhamany.

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<![if !supportLists]>5.11 <![endif]>Improvement in fruit Quality

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Pruning time, variations in climate during the growth period (temperature, humidity and frost), use of various chemicals to control diseases and pests are the main factors which determine the quality of the produce. Good variety bunches of Grapes for eating should be from medium to big sized, seedless grains. Varieties like Perlette tend to bear very compact bunches and require considerable thinning of berries for proper development of berry and bunch. Removal of distal end of the bunch helps in uniform ripening of berries. 

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Application of growth regulators also helps in improving the fruit quality. Application of 20 ppm. of Gibberellic acid (GA) (2g./100 l. water) at full bloom followed by dipping of bunches in 75 ppm. of GA solution at fruit set stage increases the bunch and berry size of seedless varieties. Similar kind of treatment given to seeded varieties does not give the same kind of result. Pre-bloom application of SADH (1500 ppm.) and CCC (1200 ppm.) increases fruit set and yields in Thompson Seedless and Anab-e-Shahi cultivars of grapes.

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<![if !supportLists]>5.12 <![endif]>Plant Protection Measures

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<![if !supportLists]>5.12.1 <![endif]>Insect Pests

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Insect pests mostly observed are flea beetle, thrips & wasps. For controlling these spraying with Dichlorovas, Dimethoate & Endosulfan is recommended.

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<![if !supportLists]>5.12.2 <![endif]>Diseases

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The Crop is suspect to diseases likedowny mildew, powdery mildew, black rot, wilt, leaf blight etc. Timely treatment and control measures areneeded.

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<![if !supportLists]>5.12.3 <![endif]>Disorders

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Some of the disorders observed in case of grapes are post harvest berry drop, berry cracking, leaf cholorosis, dead arm & trunk splitting. 

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<![if !supportLists]>5.13 <![endif]>Harvesting and Yield

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In North India, plants startfruiting after two years of planting. Berriesstart ripening from the end of May in early varieties. However, most of thevarieties are harvested after they have changed colour near the tip and havebecome sweet. A day prior to picking, the broken, decayed, deformed,under-sized berries are removed. The clusters are usually harvested during theearly hours of the day before the temperature rises above 20⁰ C.

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Yield varies according to varietyand climatic conditions etc. Theaverage yield of Anab-e-Shahi and Bangalore blue is 40-50 tonnes/ha while thatof seedless varieties is 20 tonnes/ha. Average yield of 20-25 tonnes/ha. isconsidered good.

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6. POST HARVESTMANAGEMENT

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<![if !supportLists]>6.1 <![endif]>Grading

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Grading is mainly done based on thesize and colour of the grapes to maintain uniformity of berries in a package. Whilegrading, size of the berry is the criterion but not the size or shape of thebunch.

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<![if !supportLists]>6.2 <![endif]>Pre-Cooling

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Pre-cooling is done to reduce thefield heat, moisture loss and subsequently increase the storability of grapes. Fruit needs to be pre-cooled to a temperaturebelow 4.4⁰ C within six hours after harvesting in cold rooms, forcedair coolers, refrigerator cars and tunnels. Cooling of grapes is generallycarried out in special rooms attached to the cold storage units. Mobile pre-cooling units (refrigerator cars)are also in operation to cool the grapes during their transport to the coldstorage units situated away from the production site.

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<![if !supportLists]>6.3 <![endif]>Storage

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The shelf life of grapes is only oneweek at room temperature. The storage life of grapes can be increased byemploying suitable means to reduce desiccation, decay due to growth of fungie.g. Botrytis, Cladosporium, Alternariaetc. and bio-chemical deterioration. Harvesting the over-ripe grapes during hothours of the day, careless handling to cause bruises and injuries to theberries at harvest and packing stage can reduce the storage life of grapes.Under optimum conditions of storage, the maximum storage life of Anab-e-Shahi varietyis 40 days, Muscat 45 days, Thompson Seedless 30-60 days etc. Ideal conditions for storage are lowtemperature (0⁰ C) and high humidity (92-96%).

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The following methods arerecommended for increasing the shelf life of grapes :

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<![if !supportLists]>6.4 <![endif]>Packing

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Table grapes meant for local marketare picked and packed directly in containers in the field. Table grapes meantfor long distance markets and those for overseas markets are packed differentlyin the packing shed. Raisin, juice and wine grapes are subjected to suitabletreatments and processed.

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Different types of containers areused for packing grapes in India. Bucket shaped baskets (36cm. diameter at thetop, 20 cm. at base and 25cm. height, capacity -5kg.) made of thin bamboostrips are commonly used in Hyderabad (Andhra Pradesh) and Bangalore(Karnataka). Wooden boxes rectangular in shape and capacity to accommodate 5 to8kg. of fruits are also used. The most commonly used containers are ventilatedcard board boxes of corrugated fibre board (CFB) cartons which absorb moisturereleased by the grapes and provide insulation against minor fluctuations intemperature during cold storage. Size of the box varies to accommodate 2 to 4kg. of fruit. The inner dimensions of the CFB carton accommodating 4 kg. grapesare 37 cm. in length, 25.5 cm in width and 11.5 cm. in height, and those of thecarton accommodating 2kg. grapes are 25.5x18.5x11.5 cm. Irrespective of thesize of the carton, each one contains two holes of 2cm. diameter on eitherside. Table grapes for overseas markets are packed in five-ply corrugated fibreboard boxes, printed and labeled attractively. The standard dimensions of thecarton are 50 cm. x 30 cm. x 12 cm. to accommodate 5 kg. grapes.

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For the European market, bunches ofgrapes of approx. 300 to 700 gms. are packed in food grade plastic pouches.They are then wrapped in polythene sheet along with grape guard and tissuepaper. Grape guard is used as per international norms to prevent fungal andbacterial infection to grapes due to moisture, if any.

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<![if !supportLists]>6.5 <![endif]>Transportation

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Table grapes are mostly transportedthrough roadways for local, short distance or long distance markets. About 5 %of the produce is transported by rail and the quality of produce transportedthrough air cargo is almost negligible. The cold chain for grapes is maintainedmeticulously right from pre-cooling state to selling of the same. The producefor international market is sent through refrigerated vans by road upto the seaport and then again by sea in refrigerated containers in the ships to theirrespective destination.

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<![if !supportLists]>6.6 <![endif]>Marketing

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The producers sell the fruit eitherto the pre-harvest contractor or to the wholesaler through an agent with thesemiddlemen sharing profit. The responsibility of harvesting, packing,transportation and marketing vests with the contractor to whom the produce issold on the basis of price agreed for unit weight of the produce or withoutweighing for a mutually agreed price.

Co-operative grape marketingsocieties are in existence in many grape producing states of India. Theadvantage of marketing by producers’ cooperative are:

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<![if !supportLists]>·<![endif]>Reductionin the price gap by avoiding the commission agent and wholesaler;

<![if !supportLists]>·<![endif]>Regulatesupplies to different markets; and

<![if !supportLists]>·<![endif]>Minimizemarketing problems arising out of unhealthy competition among producers.

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Two channels of selling grapes existin the international markets viz., (i) through producer’s co-operatives whocollect, pack, cool, transport, market it abroad and share the profit with thegrowers and (ii) through traders who purchase, pack, pre-cool, store and thenship these in refrigerated containers to overseas markets.

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<![if !supportLists]>7<![endif]>TECHNOLOGY SOURCES

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The major sources for technology as well as quality planting material are:

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<![if !supportLists]>(i) <![endif]>National Research Centre for Grapes, P.B. No.3, Manjri Farm Post, Solapur Road, Pune – 412 307, Maharashtra 

[Tel: (020) 2691 4246, 2691 4245]

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<![if !supportLists]>(ii) <![endif]>Indian Institute of Horticultural Research, Hessaraghatta, Lake Post, Bangalore – 560 089, Karnataka

[Tel: (080) 2846 6471, 28466353]

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<![if !supportLists]>(iii) <![endif]>Indian Agricultural Research Institute, New Delhi – 110 012.

[Tel: (011) 2573 3375, 2573 3367]

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<![if !supportLists]>(iv) <![endif]>Mahatma Phule Krishi Vidyapeeth, Rahuri – 413 722, Maharashtra

[Tel: (02426) 224 3208]

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<![if !supportLists]>(v) <![endif]>University of Agricultural Sciences, GKVK, Bangalore – 560 065, Karnataka, [Tel: (080) 2333 2442]

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<![if !supportLists]>(vi) <![endif]>Acharya NG Ranga Agricultural University, Rajendra Nagar, Hyderabad – 500 030, Andhra Pradesh, [Tel: (040) 2401 5078]

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<![if !supportLists]>(vii) <![endif]>University of Agricultural Sciences, Dharwad – 580 005, Karnataka

[Tel: (0836) 244 7783]

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<![if !supportLists]>(viii) <![endif]>Directorate of Horticulture, Shivaji Nagar, Pune, Maharashtra

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<![if !supportLists]>(ix) <![endif]>Directorate of Horticulture, Lalbagh, Bangalore – 560 003, Karnataka

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<![if !supportLists]>(x) <![endif]>Directorate of Horticulture, Public Gardens, Hyderabad, Andhra Pradesh

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<![if !supportLists]>8<![endif]>ECONOMICS OF A ONE ACRE MODEL

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<![if !supportLists]>8.1<![endif]>Highquality commercial cultivation of the crop though capital intensive is highlyremunerative (BCR being 1.8 L). A oneacre bankable model project presented below bears this out.

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Costs & Returns:

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<![if !supportLists]>8.2<![endif]>Thecost components of such a model along with the basis for costing are exhibitedin AnnexureI. A summary is given in the figure below. The project cost works out to Rs. 3.20 lakhs.

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Figure-I : COST OF PROJECT

Project Cost:

(Amount in Rs.)

@Cost of newly purchased land will belimited to 10% of the total project cost.

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<![if !supportLists]>8.3<![endif]>Themajor components of the model are:

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<![if !supportLists]>·<![endif]>Land Development: (Rs.4.0 thousand):This is the labour cost of shaping and dressing the land site.

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<![if !supportLists]>·<![endif]>Fencing (Rs.29.6 thousand): It is necessary to guard the orchard by barbed wire fencing tosafeguard the valuable produce from poaching.

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<![if !supportLists]>·<![endif]>Irrigation Infra-structure (Rs.56.0thousand): For effective working with drip irrigationsystem, it is necessary to install a tube well with diesel/electric pumpset andsubmersible motor. This is part cost oftube-well.

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<![if !supportLists]>·<![endif]>Drip Irrigation & FertigationSystem (Rs.35.0 thousand): This is average cost of oneacre drip system for the crop inclusive of the cost of fertigationequipment. The actual cost will varydepending on location, plant population and plot geometry.

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<![if !supportLists]>·<![endif]>Equipment/Implements (Rs.10thousand): For investment on improved manuallyoperated essential implements a provision of Rs.10 thousand is included.

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<![if !supportLists]>·<![endif]>Building and Storage (Rs.30thousand): A one acre orchard would require minimally apump house and a store-cum grading/packing room.

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<![if !supportLists]>·<![endif]>Erection of Bower System: (120 thousand). Erection of Bower system over one acre wouldcost Rs.1.20 lakh.

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<![if !supportLists]>·<![endif]>Cost of Cultivation (Rs.35.4thousand): This includes labour, inputs,planting material (1000 vines per acre at a spacing of 2.0 m. x 2.0 m.) etc.during the gestation period.

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<![if !supportLists]>8.4<![endif]>Labourcost has been put at an average of Rs.70 per man-day. The actual cost will vary from location to location dependingupon minimum wage levels or prevailing wage levels for skilled and unskilledlabour. Cost on ‘training’ system canvary widely depending on the type used.Bower type is the most popular.

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<![if !supportLists]>8.5<![endif]>Profitabilitycalculations are exhibited in Annexure II.

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<![if !supportLists]>8.6<![endif]>Recurring Production Cost: Recurringproduction costs are exhibited in Annexure III. The main components are farm inputs, (FYM,fertilizers, liming material, plant growth regulators, plant protectionchemicals etc.), labour and power mainly for irrigation.

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<![if !supportLists]>8.7<![endif]>Besides,provision is also included for harvesting and packing/transportation for theproduce to the nearest secondary market.

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<![if !supportLists]>8.8<![endif]>Returns from the Project:The average annual yield from the plantation is estimated at 3 tonnesper acre in year two and 10 tonnes per acre in year three (vide Annexure III). Valued at Rs.25000 per tonne the totalrealization works out to Rs.3.25 lakhs per annum.

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Project Financing:

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<![if !supportLists]>8.9.<![endif]>Balance Sheet:The projected balance sheet of the model is given at AnnexureIV. There would be threesources of financing the project as below:

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Source Rs. thousands.

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Farmer’s share 160

Capitalsubsidy 64

Termloan 96 Total 320

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<![if !supportLists]>8.10<![endif]>Profit & Loss Account: The cash flow statement may be seen in Annexure V. Annexure VI projects the profit andloss account of the model. The annualgross profit works out to Rs.56.3 thousand in year two rising to Rs.202.3 thousandin year three.

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<![if !supportLists]>8.11<![endif]>Repayment of Term Loan:The term loan will be repaid in 11 equated 6 monthly installments with amoratorium of 24 months. The rate ofinterest would have to be negotiated with the financing bank. It has been put at 12% in the model (vide AnnexuresVII & VII-A).

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<![if !supportLists]>8.12<![endif]>Depreciationcalculations are given in Annexure VIII.

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Project Viability:

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<![if !supportLists]>8.13<![endif]>IRR/BCR:The viability of the project is assessed in Annexure IX over a periodof 5 years. The IRR works out to 26.16and the BCR to 1.4.

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<![if !supportLists]>8.14<![endif]>TheDebt Service coverage ratio calculations are presented in Annexure X. The average DSCR works out to 5.45.

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<![if !supportLists]>8.15<![endif]>Payback Period:On the basis of costs and returns of the model, the pay back period isestimated at 3.47 years (vide Annexure XI).

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<![if !supportLists]>8.16<![endif]>Break-even Point:The break even point will be reached in the 3^rd year. At this point fixed cost would work out to 30.0%of gross sales - vide Annexure XII.

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