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Latest statistics recorded by the wine production department
of the Maharashtra Industrial Development Corporation's (MIDC) show that
21.1million litres of wine were produced by their 57 wineries this year.
This was 60% more than the 13.2 million litres produced last year (2006-07).
The figures show that the wine production of Maharashtra is maintaining
its recent growth of over 40% annually. The amount produced in 2006 was
only 9.4 million litres.
Six new wine projects at Nashik, Pune, Sangli and Buldhana
produced 0.72 million litres between them alone," said Jaideep Kale,
technical coordinator of Grape Wine Parks for the MIDC.
One such winery which is making rapid strides is Chateau
d'Ori in Dindori, new Nashik. The winery harvested about 120 tonnes last
year during its maiden year of wine making. This year it has produced
hat quantity of Merlot alone. With 300 tonnes crush, it hopes to deliver
over 20,000 cases to the market. Last year it could produce over 7000
cases only.
Credit for the increase in production goes partly to
the Maharashtra government which has been taking proactive measures for
the last 10 years, resulting in the current growth. It has invested Rs
3.28 billion ($80 million) in wine making including development of wine
parks. About 8,000 acres of land are now under cultivation for wine production,
according to Kale.
About 4500 tons of grapes have been harvested by Sula,
twice as last year's 2250 tonnes, including those by the contracted farmers.
This will be enough to produce over 320,000 cases. Of course not all of
this will end up as saleable wine since a sizeable number is stored for
next year. Sula sold around 175,000 cases in 2007-08.
Bangalore based Grover Vineyards has also clocked the
planned growth of 30% over last year. Kapil Grover, in his last minute
consultation with Michel Rolland who left this morning after the completion
of harvest informed delWine,' we have harvested a total of 1500 tonnes
of which 300 are in Mahrashtra. This represents 30% growth over last year.'
Grover's entry level Santé is made from Maharashtra grown grapes.
No time for bubbly yet
The production may be galloping but the sales have to
keep up too. With the current market for Indian wines being an optimistic
one million cases, only 9 million litres would be consumed. With a total
of about 23 million tonnes, how much of it would be sold and how much
would be stored in the low temperature tanks is a moot question. The expected
tripling of consumption will take place in 3 years whereas the wine excess
would be now.
Maharashtra's exports are rising steadily, says Jaideep.
From 274,000 lakh litres in 2003-04, Maharashtra has now doubled the exports.
But more efforts will be required to increase exports. APEDA which is
keen to offer its export services might come in handy for those who do
not have established export channels.
Wine may not be as perishable as grapes but nevertheless,
it cannot be stored in tanks indefinitely, especially when the tanks would
need to be emptied soon as the next harvest is ready. Majority of the
wine produced is meant to drink young. With the more reasonably priced
imports breathing down their necks, the pressure from imported wines is
expected to increase.
There will be pressure on producers to increase the volumes
and invariably they may have to reduce the prices significantly. Otherwise,
they may be stuck with wine that they may never be able to sell.
If one is optimistic, the Indian wine industry is set
to grow at a rate higher than the previous year's 40% because of the aggressive
marketing they will have to do. Supermarkets are opening up. There is
an air of optimism in the skies. Newer markets are being explored in the
II-tier and even III-tier cities.
But getting rid of the higher available stocks is a
challenge which will be facing most producers, while those bottles of
Champagne are cooling in the chiller, to celebrate the reported 60% increase
in production.
Subhash Arora
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