SCHEMES AND POLICIES FOR MARKETING GRAPES IN INDIA

1. SCHEMES AND POLICIES FOR MARKETING GRAPES IN INDIA Next End

2. OUTLINE • Uses of grapes • Export status of grapes • Function of grape processing board • Financial assistance by NCDC • Post harvest management schemes • Schemes for supply chain infrastructure • Ministry of Food Processing Schmes Previous Next End

3. INTRODUCTION A grape is a non-climacteric fruit specifically a berry, that grows on the perennial and deciduous woody vines of the genus Vitis and can be crimson, black, dark blue, yellow, green, orange, and pink Previous Next End

4. USES OF GRAPES • Table grapes • Wine • Raisin • Grape juice • Canned grape. • Jam • Juice • Jelly • Molasses • Grape seed Previous Next End

5. INTERNATIONAL SCENARIO The total world production is estimated to be about 63 million tonnes which amounts to about 16% of total fruit production next to citrus and bananas and followed by apples   The major world producers are • Italy • France • Spain, • U.S.A • Turkey • Argentina • Iran, • Portugal • South Africa • Chile. • Unlike in India, 70% of the world grape production is used for wine making.  Previous Next End

6. INDIAN SCENARIO • Annual grape production in the country is estimated to be 1.6 million metric tonnes and area under cultivation about 60 thousand hectares. • It accounts for only 0.02% of total fruit production and occupies the 7th position among all fruits. • India is credited with achieving the highest productivity of grape with the 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 in the tropical region of the country. • 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 Previous Next End

7. WORLD TRADE • 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. • World trade in grapes has increased from 1 million tonnes in 1980 to more than 2.7 million tonnes in 2010. • Chile accounted for almost half of the growth in export of grape followed by South Africa, Argentina, Brazil and Australia.  Previous Next End

8. GRAPE EXPORT FROM INDIA • Of the total grapes produced in the country around 1.2% is processed into wine • The grape export from India started in the year 1991 with the initiation of economic liberalization. • 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, Bangladesh, Mauritius, Singapore and Hongkong.  • 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. Previous Next End

9. The grape export from India started in the year 1991 with the initiation of economic liberalization. •  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, Bangladesh, Mauritius, Singapore and Hongkong.  • 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. Previous Next End

10. EXPORT CONSTRAINTS • Lack of export varieties • Lack of post harvest treatment facilities such as vapor hat treatment • Lack of post houses from farm to port • High cost of obtaining export certification Agri Export zone for Grapes in India Maharashtra - Nasik, Sangli, Sholapur, Satara, Ahmednagar Andra Pradesh - Rangareddy, Medak, Mehboobnagar Previous Next End

11. GOVERNMENT SCHEMES AND POLICIES FOR MARKETING GRAPES Previous Next End

12. Functions of Indian Grape Processing Board • To focus on Quality up gradation, market research and information, domestic and international promotion of Indian wine. • To foster sustainable development of Indian Wine Industry • To formulate a vision and action plan for the growth of Indian Wine Sector including research and development for quality up gradation in new technologies/ processes. • To set up facilities for wine analysis, testing for “quality” defining and label standards, certification of wine and promoting Good Manufacturing Practices (GMP)/Hazard Analysis and Critical Control Points (HACCP)/ISO 22000; 2005 Previous Next End

13. National Cooperative Development Corporation • The National Cooperative Development Corporation supports fruit marketing (including grapes) and processing cooperatives. • It is a unique organization plays both developmental role and provides financial assistance for creating infrastructure for marketing, processing and storage of fruit produce Previous Next End

14. Financial assistance by NCDC Strengthening of share capital base of fruit cooperatives   Under this scheme, assistance up-to Rs.10 lakhs is provided for increasing the capital base of the beneficiary Cooperative societies for improving their marketing operations. Margin money assistance for raising working capital Assistance is provided to enable the cooperative society to raise working capital from Banks for increasing business operations.  This assistance is available to State Federations, District Level Federations and Commodity Marketing Societies. Previous Next End

15. CONT. Assistance for purchase of transport vehicles The Corporation provides assistance to the beneficiary societies for purchase of transport vehicles for moving stocks from growing areas to consuming centers. Construction of packing and grading sheds and godowns For construction of godown and sheds, assistance is provided to cooperatives at the primary and mandi level. Construction of Cold Storages Assistance to the cooperatives is provided for setting-up of new Ice plants and cold storages as also for expansion/modernisation of the existing units. Previous Next End

16. Creation of marketing infrastructure including retailing Assistance is provided to create integrated marketing infrastructure including that of retail outlets. Setting up of Processing Units Assistance is provided to Cooperatives for establishment of Processing units of fruits and vegetables including that of other products like Ayurvedic Medicines, Honey & Spices Processing units. Previous Next End

17. Direct Finance by NABARD on Concessional Terms • Project funding for capital investment relating to post harvest management, processing, storage and transportation • Export credit/packing credit Post Harvest Management Schemes • Various Government Organisations which provide incentives for post harvest schemes 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 feasibility studies, Previous Next End

18. Infrastructure Projects Initiated by APEDA • Established NRL for exports of table grapes for testing of pesticides residue through NRC Pune • Up-graded laboratory for AGMARK, Lab, Delhi, fortesting of pesticide residue for issuance of certificate of conformity for exports of fresh fruits • Up-graded laboratory for AGMARK, Lab, Mumbai,fortesting of pesticide residue for issuance of certificate of conformity for exports of fruits Upcoming Infrastructure Projects • Common multi product project (Pack House) for fruits at Ludhiana, Punjab by MARKFED, Punjab. • Common multi product project for fruits at Fatiabad, Kolkatta (Pack House) by WBSFPHDCL. • Setting up of integrated Pack House for fruits at Muhana, Rajasthan Previous Next End

19. Scheme for Development of Supply Chain Infrastructure Component 1 Establishment of common infrastructure facilities at ports /airports, integrated pack house, vapour heat treatment plants, electronic beam processing or ionizing irradiation facilities.-100% grant-in-aid for APEDA. Component 2 Setting up of sheds for intermediate storage and grading, storage/ cleaning operation of the produce - 25% of the cost of equipment subject to a ceiling of Rs.5 lakhs per beneficiary. Previous Next End

20. Component 3 Setting up of mechanized handling facilities including sorting, grading, washing, waxing, ripening, packaging and palletisation - 25% of the cost subject to a ceiling of Rs.10 lakhs per beneficiary Component 4 Providing facilities for pre shipment treatment such as fumigation, X-ray screening, hot water dip treatment, Water softening Plant - 25% of the cost subject to a ceiling of Rs.25 lakh per beneficiary Component 5 Establishment of market facilitation centres (MFC) - 100% assistance for APEDA recognized exporters’ associations Previous Next End

21. National Horticulture Board Scheme • NHB has a scheme for commercialization 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 schem 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.  Previous Next End

22. National Agricultural Cooperative Marketing Federation • NAFED is the apex Cooperative Marketing Organisation dealing in procurement, distribution, export and import of selected agricultural commodities. • NAFED is a central nodal agency of the Government for undertaking price support operations for nonperishable commodities such as pulses, oilseeds and for Market Intervention in perishable horticultural items like - Potato, onion, grapes, kinnow, oranges, eggs, apples, chillies, black pepper . Previous Next End

23. Ministry of Food Processing Industries schemes • 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. • 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. Previous Next End

24. 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). • 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 processing unit with assistance up to Rs.60 lakh. Previous Next End

25. Establishment of Marketing Infrastructure for fruits (INCLUDING GRAPES) Terminal Markets 25% to 40% (limited to Rs.50.00 crore) as Public private Partnership mode through competitive bidding in accordance with operational guidelines issued separately. • Wholesale Markets Credit linked back-ended subsidy @ 25% of the project capital cost of project in general areas and 33.33% in case of Hilly & Scheduled areas for individual entrepreneurs Previous Next End

26. Rural Markets Credit linked back-ended subsidy @ 40% of the mandies/Direct capital cost of project in general areas and 55% in markets case of Hilly & Scheduled areas for individual entrepreneurs. Retail Markets/ outlets Credit linked back-ended subsidy @ 40% 51(environmentally controlled) of the capital cost of project in general areas and 55% in case of Hilly & Scheduled areas for individual entrepreneurs Functional Infrastructure for Packing , Grading & Sorting Credit linked back-ended subsidy @ 40% of the Infrastructure: for capital cost of project in general areas and 55 % in collection, sorting/ case of Hilly & Scheduled areas for individual grading, packing units entrepreneurs. Previous Next End

27. Market Information Service scheme for fruit Crops • To generate information on wholesale prices, arrivals and trends in various markets of the country for important fruits and also on retail prices for increased number of selected markets. • To analyze the trends of arrivals, prices and other related factors of the selected fruit and vegetables such as stock in storage, crop stand etc and generate Market Intelligence Reports • To establish a nation-wide communication network for speedy collection and dissemination of market information data for its efficient and timely utilization. Previous Next End

28. To prepare farmers’ advisory and issue the same for the benefit of producer farmers especially by making use of statistics so generated and collected for optimizing returns to the producers • To collect and disseminate information on international prices prevailing in potential foreign markets • To collect and compile horticulture database and strengthen existing system of Crop Estimation Survey-Fruits Previous Next End

29. Maha Grapes in Maharastra • Maha Grapes came into existence in 1991. It owes its origins to the Maharashtra State Agricultural Marketing Board (MSAMB). • The objective of the MSAMB was to promote the marketing of fruits by assisting farmers technically and financially and linking them to new domestic and international markets. • The creation of Maha Grapes is unique in other ways, as it is the first of its kind to make use of a special provision under section 20(1) of Maharashtra Cooperative Act. • Maha Grapes is the first organization in the State to have the characteristics of both a cooperative and a private sector partnership firm. Previous Next End

30. The role of Maha Grapes as a marketing entity itself is a policy innovation. Producer organizations might not be most adept at marketing their products and thus the need for a specialized marketing entity. • MahaGrapes could establish itself easily and firmly as it built upon the existing Grape Growers’ Association (Draksha Bagitdar Sangha). • The Sangha has been in existence since the 1950’s and boasts of 20,000 member farmers • Also, called the Prayog Parivar meaning family for experimenting, it has since organized the grape growing farmers to encourage the improvement of produce quality and facilitate marketing domestically Previous Next End

31. Assesment • What are the uses of Grapes? • What are the functions carried by Indian Grape Processing Board ? • How much scale of finance given NCDC ? • What are the schemes for Supply Chain Management infrastructure? • what are the Establishments of Marketing Infrastructure for fruits ? Previous Next End

32. REFERENCES • Department of Agriculture and Co-operation , Ministry of Agriculture, Govt. of India., New Delhi. • Agricultural & Processed Food Products Export Development Authority (APEDA), New Delhi. • Ministry of commerce and Industries , Govt. of India., New Delhi. • www.nabard.org • www.apeda.gov.in • www. indianwine.com • www.igovernment.in Previous End