Wine consumption falls, problems rise for farmers

More than a thousand farmers will suffer losses as 50 per cent of grapes will remain uncrushed this year. They are also getting a low price because of the falling demand

Wine consumption falls, problems rise for farmers

More than a thousand farmers will suffer losses as 50 per cent of grapes will remain uncrushed this year. They are also getting a low price because of the falling demand

There's bad news. Wine consumption has seen a drastic decline. While those who detest liquor and alcoholics may beam with this news, farmers are in for really bad times.

Experts from the wine industry claim that 50 per cent of last year's stock remains untouched at storage tanks in various wineries.

"Wine consumption has gone down considerably," said Sharad Gore, director, Nira Valley Grape Wines Pvt Ltd.
u00a0
"The demand for wine was lesser by 70 per cent in December 2008 compared to last year. Consumption of wine has declined by 60 per cent in hotels and at corporate parties," added Gore.

According to Dr Jaideep Kale, technical co-ordinator of the Grape Wine Industry of Maharashtra, "Because of the falling demand, 50 per cent of grapes will remain uncrushed this year."

Since the wine grapes are seeded and unsuitable for direct consumption, discarding them is the only option.

As a result, grape growers across Nasik, Sangli, Latur, Osmanabad, Pune and Baramati have been badly affected.

"Earlier, farmers who did not sign any contract with any winemakers were able to fetch Rs 40 per kg. Now, the price has fallen to Rs 15 and with fewer takers, farmers are reeling under a huge loss," added Kale.
u00a0
Poor state

He further stated, "Traditional farmers had turned to wine fruit varieties as an attractive option because of the growth in prices of wine grapes for three consecutive years.

But now, these farmers are in a pathetic state."

Kale said, "There are 9,000 acres of land where wine grapes are planted. However, out of that only grapes from 5,000 odd acres will be crushed.

The others will go waste." Estimating the losses that farmers will have to bear, Kale said, "The approximate cost of plantation per acre for wine grapes is Rs 25,0000 to 30,000. At the current state, close to 1,000 farmers are suffering.
u00a0
Solution

To get out of this crisis, Gore said, "The state government should reduce the sales tax on wine that is 20 per cent. The food department should hold control over the wine industry instead of the excise
department."

Kale said, "Permitting wine makers to produce grape spirit that can be further processed into brandy and its derivatives is one of the solutions."

He added promoting wine makers to produce grape juice will also prevent them from going waste.

No problems, say hoteliers

Hotels, however, say that wine consumption has gone up. Kirk Edmonds, GM, Pride Hotels, said, "Compared to any other liquor served in our hotel, wine consumption has gone up" Sources at Taj Blue Diamond in Pune said, "Wine consumption has not been affected, as corporates prefer only wine during their meals."