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GRAPE

1. INTRODUCTION

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

2. OBJECTIVE

The primary objective of this exercise is to support commercial cultivation of grapes by projecting a one acre bankable model project. The high yield of grape is
limited to a few vineyards and is not consistent throughout the life - span of the crop. In order to get uniformly high yields with good quality fruit, the basic principles
of viticulture needs to percolate down to all the growers.

Peak production during March-April months leading to glut in the market and poor quality of grapes resulting in tremendous post-harvest losses are other problems
which limit profits. Growers need to be educated on means of extending harvest over a longer period to get better price for their produce and to minimize market
risk.

3. BACKGROUND

3.1 Origin

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

3.2 Area & Production

India is among the first ten countries in the world in the production of grape. The major producers of grape are Italy, France, Spain, USA, Turkey, China and
Argentina. This crop occupies fifth position amongst fruit crops in India with a production of 1.21 million tonnes (around 2% of world’s production 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 the country. Production is 2.8% of total fruits
produced in the country. About 80% of the production comes from Maharashtra followed by Karnataka and Tamil Nadu.

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

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

Table-1: State-wise Area, Production & Productivity of Grapes during 2001-02.

Area Production Productivity

State
(‘000 Ha.) (‘000 MT) (MT/Ha.)
Maharashtra 32.50 911.60 28.10
Karnataka 10.00 169.70 16.90
Tamil Nadu 2.40 51.70 22.00
Punjab 1.40 36.70 27.00
Andhra Pradesh 1.50 29.40 20.00
Haryana 1.10 6.40 5.70
Madhya Pradesh 0.10 2.60 25.00
Mizoram 0.20 0.60 3.20
Jammu &
0.20 0.30 1.60
Kashmir
Others 0.10 0.60 -
TOTAL 49.50 1209.60 24.40
Source: Database of National Horticulture Board, Ministry of Agriculture , Govt. of India.

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

Sr. No. Variety Percent

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Area
1 Thompson Seedless 55.0
2 Bangalore Blue 15.0
3 Anab-e-Shahi & Dilkhush 15.0
4 Shared Seedless 5.0
5 Perlette 5.0
6 Gulabi & Bhokri 5.0

3.3 Economic Importance

The fruit contains about 20% sugar in 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 limited quantity is
utilized for the production of liquor, dry fruits like raisins etc.

4. MARKET ANALYSIS AND STRATEGY

4.1 Demand and Supply Patterns

The contribution of India in foreign trade of grape and its processed products is meager, although, export of fresh grape from India is on the increase. The share of
Indian grape in the imports of the European countries (U.K., Germany, France, Netherlands) and Asian countries (Japan, Singapore, Hong Kong and China) needs
to be increased.

Varieties in demand in international markets include Thompson Seedless, Emperor, Ruby Seedless, Red globe, Christmas rose, Crimson Seedless, Calmeria, Rouge

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

‘Mahagrapes’, a co-operative partnership firm established in 1991, with the support of Maharashtra State Agricultural & Marketing Board (Pune), NCDC (New Delhi),

4.2 Import / Export Trends

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

Fresh grapes are being exported from India 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 during the period 1999-2000 to 2002-03 is given in Graph-3. The export statistics of fresh
grapes from India during 2001-02 is presented in Table-2.

Table-2: Country-wise export of fresh

grapes from India during 2001-02.

Quantity Value
Country (‘000 (Rs. in
Tonnes) crores)
U.K. 5.04 24.08
U.A.E. 4.83 16.90
Netherlands 1.35 6.36
Saudi Arabia 0.62 1.92
Sri Lanka 0.56 1.62
Oman 0.51 2.76
Germany 0.28 1.17
Others 1.35 5.15
Total 14.57 59.96
Source: APEDA, New Delhi
About 100 metric tonnes of grapes were imported during the period 1999 to 2002, at an average per kg. price of Rs.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.

4.3 Analysis and Future Strategy

Production currently is much higher than demand in the domestic market. There is need to promote export of grape and its products to sustain present production
trend. Otherwise growers can incur heavy financial losses.

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

We have now taken adequate measures to ensure prescribed pesticide residual limits in the grapes produced in the country. To boost exports regular guidance is
being given to the farmers and their co-operative societies on different aspects e.g. pre-harvest, proper use of pesticides, post harvest, packaging, pre-cooling, cold
storage and transportation. There is a need to increase the share 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 the export of Indian grape to Asian countries like Japan, Singapore, Hong Kong and
China in which prices are very high.

5. PRODUCTION TECHNOLOGY

5.1 Agro-climatic Requirements

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

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

In its natural habitat, the crop bears fruit during the hot and dry period and undergoes dormancy during the period of severe cold. It tolerates frost during resting
stage but is very susceptible during growing period. Temperature ranging from 15-350 C is ideal for shoot growth and normal physiological processes of the
grapevine. Vines do not grow and fruit well when the temperature falls below 100 C.

Locations where the annual rainfall does not exceed 900 mm. are ideal for its cultivation. More than the amount of rainfall received during a year, the number of
rainy days in a year and the occurrence of rains in relation to the stage of growth of the vine is important. Humidity associated with rains during flowering and fruit
ripening is not favourable and invites the attack of fungal diseases.
5.2 Growing and Potential Belts

Maharashtra (Nasik, Sangli, Ahmednagar, Pune, Satara, Solapur and Osmanabad Districts) ranks first in the production of grape followed by Karnataka
(Bangalore, Kolar, Bijapur), Tamil Nadu & Andhra Pradesh (Rangareddy, Medak, Ananthapur). In these States, grape orchards 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 cultivated mainly in Punjab, Haryana, Himachal Pradesh, and Uttar Pradesh. Vegetative growth takes place only in the spring season;
consequently the fruiting is only once in a year during the summer months.

5.3 Varieties Cultivated

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

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

Regions States Varieties cultivated

Region - I. Haryana, Punjab, Delhi, Western Thompson Seedless, Perlette, Beauty
(Northern Uttar Pradesh, Rajasthan Seedless, Anab-e-Shahi, Black Hamburg,
India) Black Prince, Dakh, Foster’s seedling,
Kandhari, Khalili, Pandhari Sahebi, Watham
Cross, Pusa Seedless, Hur, Black Muscat,
Early Muscat, Banquiabyad, Cardinal, Kairon
Region – II § Telangana & Rayalseema Anab-e-Shahi, Thompson Seedless, Cheema
(Peninsular regions of Andhra Pradesh Sahebi, Pandari Sahebi, Gulabi, Bhokri, Kali
India) § Nasik, Pune, Sholapur, Satara, Sahebi, Sonaka & Tas-A-Ganesh(clones of
Sangli, Bhir, Aurangabad and Thompson seedless).
Ahmednagar districts of
Maharashtra
§ Bijapur,Gulbarga,Raichur,
Bellary districts of Karnataka

Region – III § Madurai, Salem and Bhokri, Anab-e-Shahi, Gulabi, Bangalore

(Peninsular Coimbatore districts of Tamil Blue, Black Champa, Convent Large Black,
India) Nadu Angur Kalan, Taifi Rosovi, Coarna Resia,
§ Bangalore, Kolar, Mysore & Queen of vineyard, Kandhari, Black Prince,
Tumkur districts of Karnataka Muscat, Pachadraksha

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

Category Varieties
Table grapes Anab-e-Shahi, Bangalore Blue, Beauty Seedless, Bhokri (Pachadrakshi),
Cheema Sahebi, Delight, Gulabi (Panneer Drakshi, Muscat Hamburg),
Himrod, Kali Sahebi,Kandhari, Khalili, Pandari Sahebi, Perlette, Selection
94, Pusa Seedless and Thompson Seedless.

Raisin Grapes Thompson Seedless, Arkavati

Wine Grapes Bangalore Blue, Thompson Seedless and Arka Kanchan

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

Coloured seeded - Bangalore Blue, Gulabi (Muscat)

Coloured seedless - Beauty seedless and Shared Seedless
White seeded - Anab-e-Shahi, Dilkhush (clone of Anab-e-Shahi)
White seedless - Perlette, Pusa Seedless, Thompson Seedless and its clones
(Tas-A-Ganesh, Sonaka & Manik Chaman).

5.4 Land Preparation

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.

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. res

5.5 Planting

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

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 m

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 Karnata

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

5.6 Training Systems

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 s

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

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 2x3 Kniffin 16-20 8-10
Beauty Seedless 2x2 Head 16-20 3-4
Anab-e- Shahi 3x6 Arbour 60-80 5-6
Perlettee 3x3 Head, Kniffin 30-40 3-4

5.6.1 Bower

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 sta

5.6.2 Kniffin (also called Espalier System)

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 domin

Advantages of Kniffin System over Bower System:

· Less expensive
· Disease incidence and spread is less.
· Easy to carry out spraying and other cultural operations.

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 d

5.6.3 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 lo

Advantages of Telephone System over Bower System:

· Better ventilation and light interception

· More convenient to carry out cultural operations and spraying
· Less expensive

Disadvantages of Telephone System over Bower System :

· Less yield as there is no provision for developing as many number of canes per unit area as in Bower.
· During summer months, sunburn of berries is observed in very hot and dry places.

5.6.4 Head System

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 bu

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.

5.7 Pruning

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

(i) Single Pruning- Single cropping

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 Janua

(ii) Double pruning – Single cropping

This system is predominantly followed in Maharashtra, north interior Karnataka in case of Thompson Seedless, and Andhra Pradesh on Thompson Seedless and Ana

(iii) Double pruning – Double cropping

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 B

5.8 Shoot Pinching

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 grow

5.9 Irrigation

Irrigation practices vary considerably in different regions of India depending upon the rainfall pattern, time of pruning, different growth stages, water-holding
capacity of soil, variety grown, training system followed and spacing of vines. Irrigation is provided once in every three days in newly planted vineyards by allowing
water into a small circular basin of 50 cm. radius. With the increase in growth rate the size of the basin increases to a radius of 2m. In case of drip irrigation, only
one emitter is placed at the base of the vine. The number of emitters gradually increases to two and then four which are shifted about 30 or 40cm. away from the
stem depending upon the variety and spacing of the vines. Heavy irrigation is provided soon after pruning in order to wet the entire root zone thoroughly and induce
active growth in the vine. Light irrigation of 50-75mm. (5.0-7.5 L./ha.) is given is given at an interval of 10-12 days during winter and 5-7 days in summers. In the
event of rainfall during that interval, the next irrigation is either omitted or delayed. Irrigation frequency is reduced during anthesis, fruiting stage and also after berry
softening to improve fruit quality.

5.10 Nutrition

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

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

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 - -
Cheema Sahebi Maharashtra 600 240 120
Gulabi, Himrod, North India 444-715 457-1332 460-1000
Perlette
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 management by K.L. Chadha, S.D. Shikhamany.

5.11 Improvement in fruit Quality

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 fac

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 dip

5.12 Plant Protection Measures

5.12.1 Insect Pests

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

5.12.2 Diseases

The Crop is suspect to diseases like downy mildew, powdery mildew, black rot, wilt, leaf blight etc. Timely treatment and control measures are needed.

5.12.3 Disorders

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

5.13 Harvesting and Yield

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

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Yield varies according to variety and climatic conditions etc. The average yield of Anab-e-Shahi and Bangalore blue is 40-50 tonnes/ha while that of seedless
varieties is 20 tonnes/ha. Average yield of 20-25 tonnes/ha. is considered good.

6. POST HARVEST MANAGEMENT

6.1 Grading

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

6.2 Pre-Cooling

Pre-cooling is done to reduce the field heat, moisture loss and subsequently increase the storability of grapes. Fruit needs to be pre-cooled to a temperature below
4.40 C within six hours after harvesting in cold rooms, forced air coolers, refrigerator cars and tunnels. Cooling of grapes is generally carried 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 cold storage units
situated away from the production site.

6.3 Storage

The shelf life of grapes is only one week at room temperature. The storage life of grapes can be increased by employing suitable means to reduce desiccation,
decay due to growth of fungi e.g. Botrytis, Cladosporium, Alternaria etc. and bio-chemical deterioration. Harvesting the over-ripe grapes during hot hours of the day,
careless handling to cause bruises and injuries to the berries 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 variety is 40 days, Muscat 45 days, Thompson Seedless 30-60 days etc. Ideal conditions for storage are low
temperature (00 C) and high humidity (92-96%).

The following methods are recommended for increasing the shelf life of grapes :
Type of treatment Period of Effect
Application
Spraying of fungicides- Captan (0.2%), 3-4 days before Reduce decay of berries in
aureofungin (500 ppm.), DCNA (2,6- harvest storage.
dicholoro-4-nitroaniline)-0.2%
Application of growth retardants- NAA Before harvest Reduce berry drop during
(500 ppm.), kinetin (50 ppm.) storage.
Spraying of growth retardants- B-9 (2000 At harvest or berry Retain the freshness of
ppm.), CCC (2000 ppm.), Alar (500 softening stage grapes for a longer period.
ppm.), maleic hydrazide (500 ppm.),
phosphon-D (500 ppm.)
Sraying with Calcium nitrate (1%) Ten days before Reduce the physiological
harvest loss in weight.

6.4 Packing

Table grapes meant for local market are picked and packed directly in containers in the field. Table grapes meant for long distance markets and those for overseas
markets are packed differently in the packing shed. Raisin, juice and wine grapes are subjected to suitable treatments and processed.

Different types of containers are used for packing grapes in India. Bucket shaped baskets (36cm. diameter at the top, 20 cm. at base and 25cm. height, capacity
-5kg.) made of thin bamboo strips are commonly used in Hyderabad (Andhra Pradesh) and Bangalore (Karnataka). Wooden boxes rectangular in shape and
capacity to accommodate 5 to 8kg. of fruits are also used. The most commonly used containers are ventilated card board boxes of corrugated fibre board (CFB)
cartons which absorb moisture released by the grapes and provide insulation against minor fluctuations in temperature during cold storage. Size of the box varies
to accommodate 2 to 4 kg. of fruit. The inner dimensions of the CFB carton accommodating 4 kg. grapes are 37 cm. in length, 25.5 cm in width and 11.5 cm. in
height, and those of the carton accommodating 2kg. grapes are 25.5x18.5x11.5 cm. Irrespective of the size of the carton, each one contains two holes of 2cm.
diameter on either side. Table grapes for overseas markets are packed in five-ply corrugated fibre board boxes, printed and labeled attractively. The standard
dimensions of the carton are 50 cm. x 30 cm. x 12 cm. to accommodate 5 kg. grapes.

For the European market, bunches of grapes 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 tissue paper. Grape guard is used as per international norms to prevent fungal and bacterial infection to grapes due to moisture, if any.

6.5 Transportation

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

6.6 Marketing

The producers sell the fruit either to the pre-harvest contractor or to the wholesaler through an agent with these middlemen sharing profit. The responsibility of
harvesting, packing, transportation and marketing vests with the contractor to whom the produce is sold on the basis of price agreed for unit weight of the produce
or without weighing for a mutually agreed price.
Co-operative grape marketing societies are in existence in many grape producing states of India. The advantage of marketing by producers’ cooperative are:

· Reduction in the price gap by avoiding the commission agent and wholesaler;
· Regulate supplies to different markets; and
· Minimize marketing problems arising out of unhealthy competition among producers.

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

7 TECHNOLOGY SOURCES

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

(i) National Research Centre for Grapes, P.B. No.3, Manjri Farm Post, Solapur Road, Pune – 412 307, Maharashtra
[Tel: (020) 2691 4246, 2691 4245]
(ii) Indian Institute of Horticultural Research, Hessaraghatta, Lake Post, Bangalore – 560 089, Karnataka
[Tel: (080) 2846 6471, 28466353]
(iii) Indian Agricultural Research Institute, New Delhi – 110 012.
[Tel: (011) 2573 3375, 2573 3367]
(iv) Mahatma Phule Krishi Vidyapeeth, Rahuri – 413 722, Maharashtra
[Tel: (02426) 224 3208]
(v) University of Agricultural Sciences, GKVK, Bangalore – 560 065, Karnataka, [Tel: (080) 2333 2442]

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(vi) Acharya NG Ranga Agricultural University, Rajendra Nagar, Hyderabad – 500 030, Andhra Pradesh, [Tel: (040) 2401 5078]
(vii) University of Agricultural Sciences, Dharwad – 580 005, Karnataka
[Tel: (0836) 244 7783]
(viii) Directorate of Horticulture, Shivaji Nagar, Pune, Maharashtra
(ix) Directorate of Horticulture, Lalbagh, Bangalore – 560 003, Karnataka
(x) Directorate of Horticulture, Public Gardens, Hyderabad, Andhra Pradesh

8 ECONOMICS OF A ONE ACRE MODEL

8.1 High quality commercial cultivation of the crop though capital intensive is highly remunerative (BCR being 1.8 L). A one acre bankable model project
presented below bears this out.

Costs & Returns:

8.2 The cost components of such a model along with the basis for costing are exhibited in Annexure I. A summary is given in the figure below. The project
cost works out to Rs. 3.20 lakhs.

Figure-I : COST OF PROJECT

Project Cost:
(Amount in Rs.)
Sl. No. Component Proposed
Expenditure
1. Cultivation Expenses
(i) Cost of planting material 10,000
(ii) Manures & fertilizers 9,000
(iii) Insecticides & pesticides 4,000
(iv) Cost of Labour 8,800
(v) Others, if any, (Power) 3600
35,400
2. Irrigation
(i) Tube-well/submersible pump 56,000
(ii) Cost of Pipeline -
(iii) Others, if any, please specify -
56,000
3. Cost of Drip/Sprinkler 35,000
4. Infrastructure
(i) Store & pump house 30,000
(ii) Labour room -
(iii) Agriculture Equipments 10,000
(iv) Others, if any. Please specify (Bower system) 1,20,000
1,60,000
5. Land Development
(i) Soil Leveling 4000
(ii) Digging -
(iii) Fencing & gates 29600
(iv) Others, if any, please specify -
33,600
6. Land, if newly purchased (Please indicate the year) @
Grand Total 3,20,000
@Cost of newly purchased land will be limited to 10% of the total project cost.

8.3 The major components of the model are:

· Land Development: (Rs.4.0 thousand): This is the labour cost of shaping and dressing the land site.

· Fencing (Rs.29.6 thousand): It is necessary to guard the orchard by barbed wire fencing to safeguard the valuable produce from poaching.

· Irrigation Infra-structure (Rs.56.0 thousand): For effective working with drip irrigation system, it is necessary to install a tube well with
diesel/electric pumpset and submersible motor. This is part cost of tube-well.

· Drip Irrigation & Fertigation System (Rs.35.0 thousand): This is average cost of one acre drip system for the crop inclusive of the cost of
fertigation equipment. The actual cost will vary depending on location, plant population and plot geometry.

· Equipment/Implements (Rs.10 thousand): For investment on improved manually operated essential implements a provision of Rs.10 thousand
is included.

· Building and Storage (Rs.30 thousand): A one acre orchard would require minimally a pump house and a store-cum grading/packing room.

· Erection of Bower System: (120 thousand). Erection of Bower system over one acre would cost Rs.1.20 lakh.

· Cost of Cultivation (Rs.35.4 thousand): 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.

8.4 Labour cost has been put at an average of Rs.70 per man-day. The actual cost will vary from location to location depending upon minimum wage levels or
prevailing wage levels for skilled and unskilled labour. Cost on ‘training’ system can vary widely depending on the type used. Bower type is the most
popular.

8.5 Profitability calculations are exhibited in Annexure II.

8.6 Recurring Production Cost: Recurring production costs are exhibited in Annexure III. The main components are farm inputs, (FYM, fertilizers,
liming material, plant growth regulators, plant protection chemicals etc.), labour and power mainly for irrigation.

8.7 Besides, provision is also included for harvesting and packing/transportation for the produce to the nearest secondary market.

8.8 Returns from the Project: The average annual yield from the plantation is estimated at 3 tonnes per acre in year two and 10 tonnes per acre in year
three (vide Annexure III). Valued at Rs.25000 per tonne the total realization works out to Rs.3.25 lakhs per annum.

Project Financing:

8.9. Balance Sheet: The projected balance sheet of the model is given at Annexure IV. There would be three sources of financing the project as below:

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Source Rs. thousands.

Farmer’s share 160

Capital subsidy 64
Term loan 96 Total 320

8.10 Profit & Loss Account: The cash flow statement may be seen in Annexure V. Annexure VI projects the profit and loss account of the model. The
annual gross profit works out to Rs.56.3 thousand in year two rising to Rs.202.3 thousand in year three.

8.11 Repayment of Term Loan: The term loan will be repaid in 11 equated 6 monthly installments with a moratorium of 24 months. The rate of interest would
have to be negotiated with the financing bank. It has been put at 12% in the model (vide Annexures VII & VII-A).

8.12 Depreciation calculations are given in Annexure VIII.

Project Viability:

8.13 IRR/BCR: The viability of the project is assessed in Annexure IX over a period of 5 years. The IRR works out to 26.16 and the BCR to 1.4.

8.14 The Debt Service coverage ratio calculations are presented in Annexure X. The average DSCR works out to 5.45.

8.15 Payback Period: On the basis of costs and returns of the model, the pay back period is estimated at 3.47 years (vide Annexure XI).

8.16 Break-even Point: The break even point will be reached in the 3rd year. At this point fixed cost would work out to 30.0% of gross sales - vide Annexure
XII.

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