As projected by many in January 2009 but predicted by delWine in September 2008, a glut was expected during teh current season. The wineries would naturally use the grapes from their own vineyards first and since they ahve cut back on the production the sufferers have been the farmers. Although Indage had denied any knowledge of recession, Sula had been the first to acknowledge the imminent problem and had warned the growers contracted with, mostly last September.
There are about 60 wineries in the state almost half of them in Nashik alone. They have been hurt the most as wine grapes are a long-life crop and the farmers cannot discontinue cultivation when rates fall in one season. The grapes cannot be used for anything else but fermenting for wine and if there is no requirement, have to be left on the vines to rot and die.
“We have held a few meetings with the farmers and other stake holders recently. Wine making is a new industry and the modalities of grape procurement are yet not settled. The recently launched Indian Grape Processing Board is also yet to take shape,” said Nashik district collector, MP Velrasu according to the report in Economic Times.
It is a known fact that during the boom period the same farmers sold the grapes to whoever offered them higher prices due to the shortage. The Cabernet Sauvignon that sold for Rs. 24 a kilo touche Rs. 40 a kilo last year, event though the quality was not fit and ripe for making good wine according to many winemakers who actually rejected the crop but found it sold to some other producers who had no option but to buy in order to produce their wine.
According to the report , in a meeting with the Collector, farmers pointed to their helplessness as the contracts are allegedlly one-sided. “Some farmers told us that they had to sell their grapes to wineries as per the contract but it is not mandatory for them to do so. They also claimed that they could not understand the details of the contract as it was in English,” said Mr Velrasu. This seems to be factually not correct but since no winery took the farmers to court, it is the word of one side against the other. But delWine had received several complaints and anecdotes sharing their frustration.
Naturally, the government machinery is helpless at this point. State agricultural minister Babasaheb Thorat has reportedly said that the global economic recession was the root cause of the problem and emphasised that the grape farmers’ problems have to be solved through discussion. This problem has been faced by Australia during the previous 2-3 years due to teh glut. Incidentally, unless some farmers dispute it, Kapil Grover assured delWien that they picked up the grapes according to the contract at higher prices this year even though they were available at Rs. 5-8 a kilo, adding that the farmers had to stick to the quality terms.
The farmers are known to use all means to increase the yields despite the constant monitoring of the producers as the sale is by weight only.
Mr Velrasu said in the absence of any official coordinating mechanism, the committee to be set up will recommend future procurement arrangements, government intervention, the possibility of creation of storage capacity among others.
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