Grape farming 16-02_2015_20_35

PROJECT REPORT ON
GRAPE FARMING
SUBMITTED BY:
Shri Umesh Dnyaneshwar Kulkarni
Korti
Mobile No.:9822350009
SUBMITTED UNDER
National Horticulture Board
Sponsored by-
Ministry of Agriculture, Government of India
www.nhb.gov.in
2014-15

Project Report on Grape Farming by Shri Umesh Dnyaneshwar Kulkarni Page 2 of 15
C O N T E N T S
CHAPTER NO. PARTICULARS PAGE NO.
I. HIGHLIGHTS OF THE PROJECT REPORT
A. About the Promoter 3
B. Project Profile 4
II. PROJECT DESCRIPTION 5
III. MARKET POTENTIAL 8
IV. SWOT ANALYSIS 9
V. ECONOMICS OF THE PROJECT
A. Basis & Presumptions 10
B. Total Cost of Project 11
C. Means of Finance 12
E. Projected Profitability 13
F. Financial Analysis 14
G. Term Loan Repayment 15

CHAPTER - I
HIGHLIGHTS OF THE PROJECT REPORT
A. ABOUT THE PROMOTER
PARTICULARS ABOUT THE PROMOTER
1. Name : Shri Umesh Dnyaneshwar Kulkarni
2. Address : Korti
3. Contact Number : 9822350009
4. Date of Birth : 21.06.1967
5. Educational Qualification : SSC
6. Project Location : Korti
7. Experience : No

B. PROJECT PROFILE (FINANCIAL)
PARAMETERS VALUES
1. Grape Variety THOMPSON
2. Area in acre 4
3. Product Grape Fruits
4. Cost of the Project 689,760
5. Bank Loan 517,320
6. Margin Money 172,440
7. Financial Indicators
BCR at 15% DF 1.58:1
NPW 15% DF(Rs.) 598,331
IRR (%) 41
DSCR 10.6
8. Interest Rate (% per annum) 12
9. Repayment
5 years plus moratorium
for the 3 year

CHAPTER - II
PROJECT DESCRIPTION
Introduction
Grape cultivation is one of the most remunerative farming enterprises in India. Grape (vitis vinifera) is called the
‘queen of fruits’. It can be successfully grown in arid and semi-arid climate which prevails over a majority of arable
lands in our country. The grapes are grown for various purposes. Generally, the grapes are classified into the
following five groups depending on their use : table grapes, raisin grapes, wine grapes, juice grapes and canning
grapes. There is good scope for grape cultivation due to its uses.
Production Technology
The success of commercial Grape orchard is depend, among other things, on the adoption of innovative technology
for both production and post harvest management. Salient features of the technological innovations that might be
followed are outlined below.
1.Establishment of Vineyards
1.1 Land Preparation and Vine Establishment
The land is tilled and laid into plots of 120 m x 180 m separated by 3 m wide roads. Land within a plot is levelled
perfectly to have a gradient of less than 1 percent in any direction to ensure uniform discharge of water through the
emitters of drip irrigation systems.
Trenches of 75 cm width, 75 cm depth and 118 m length in a north-south direction with a gap of 3 m between
trenches are opened with heavy machinery. They are closed with topsoil, up to a height of 45 cm after 15 days
exposure to sun. The remaining gap is filled with a mixture of soil, cattle manure, single superphosphate, sulphate of
potash and micro-nutrients. Usually, 50 kg of cattle manure, 2.5 kg of superphosphate, 0.5 kg of sulphate of potash
and 50 g each of ZnSO4 and FeSO4 are added to the soil for every running meter length of the trench.
1.2 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 may vary from 60 to 90 cm. depending upon the soil type. Wider
spacing (1.2 m. X 1.2 m.) is required in case of vigorous varieties like Anab-e-Shahi and Bangalore Blue. A little less
than that (i.e. 90 X 90 cm.) is required in case of varieties viz. Thompson Seedless, Perlette and Beauty Seedless. In
central Maharashtra and northern parts of Karnataka the spacing adopted for Thompson seedless and its mutants is
1.8m X 2.4 m. The pits need to be opened about a month before planting.
1.3 Planting Season
• The best season for planting the rooted cuttings of cultivated varieties in the main field is September-October
whereas for rootstocks it is February-March.
1.4 Spacing
• Spacing generally varies with the varieties and soil fertility. For vigorous varieties it is 6 m x 3 m or 4 m x 3 m and 3
m x 3 m or 3 m x 2 m for less vigorous varieties.

______________________________________________________________________________________
2. Care And Management Of Vineyards
2.1 Training of Vines
• Many training systems are in vogue in India, but the most popular are Bower, Telephone and Flat Roof Gable
systems. About 80% of the vineyard area in India is on bower system.
2.2 Pruning of Vines
• Three distinct pruning practices are in vogue in relation to cropping in the three grape growing regions of the
country. In the sub-tropical region, vines are pruned only once in December and the crop is harvested once. Half of
the canes are pruned to renewal spurs and the rest to fruiting canes (3-4 nodes for Perlette).
• In hot tropical regions, vines are pruned twice but only one crop is harvested. All canes in a vine are pruned back to
single node spurs in March-May to develop canes and the canes are forward pruned in October-November for
fruiting. The number of nodes retained on a cane varies with the variety and cane thickness. There is no scope to
prune earlier than October and later than November due to unfavourable weather conditions.
• In the mild tropical region, vines are pruned twice and the crop is harvested twice. In varieties like Gulabi and
Bangalore Blue, which are fairly resistant to rain damage and in which fruit bud differentiation is not impaired by
cloudy weather and rains, pruning is done at any time of the year. As a result, five crops are harvested every two
years.
2.3 Application of Manure and Fertilizers
• As vineyard soils are either sandy loams or heavy clays, the usage of organic manure has assumed high
importance in India. A standard dose of 500:500:1000 kg of N, P2O5 and K2O per hectare is followed in light sandy
soils, while 660:880:660 kg are applied for heavy clay soils. The annual dose is fixed based on the petiole analysis
carried out at 45 days after spur pruning. While 40 percent of the annual dose is given through organic sources, 60
percent is given as inorganic fertilizer. Calcium ammonium nitrate is usually not used. Sulphate of potash is the only
source of potash used in place of muriate, particularly in heavy clay soils. Recently application of soluble fertilizers
through drip irrigation is picking up. 40 percent of N, 50 percent of P2O5 and 33 percent of K2O of the annual dose is
given during the growth season and the rest in the fruiting season.
2.4 Weeding
• Weeds between the rows of vines are removed mechanically by tractor drawn implements. Within the rows, weeds
are manually hoed and removed. Sometimes the post-emergent weedicides, mainly glyphosate at about 2.0 kg/ha or
paraquat at about 7.5 kg/ha is sprayed in fully grown vineyards.
2.5 Supplementary Irrigation
• Since grapes are grown in areas where the evapotranspiration exceeds the precipitation, irrigation is essential. Less
than 10 percent of the vineyard areas are surface irrigated, while the rest is irrigated by drip systems. Water
requirement is calculated based on the pan evaporation using 0.8 as the crop factor. Water is applied at different
rates at different stages of vine growth and berry development.
2.6 Pests and their Management
• The important pests of grapes in India are, flea beetles, thrips, mealy bugs and leaf hoppers.
2.7 Diseases and their Management
• The important grape diseases are anthracnose, downy mildew, powdery mildew and bacterial leaf spot. In recent
years, Alternaria is also becoming a serious pathogen.

________________________________________________________________________________________
2.8 Physiological Disorders
Physiological disorders associated with high temperature and low atmospheric humidity in the hot tropical region are
dead arm and trunk splitting. Salinity injury is common in Maharashtra and north Karnataka. Other physiological
disorders are cane immaturity, water berries, cluster tip wilting, shot berries, uneven ripening and post-harvest berry
drop. The eco-physiological disorders are ‘coulure’, blossom-end rot, pink berry syndrome, berry cracking and rotting.
3. Harvesting and Yields
• Approximately one million tonnes of grapes are harvested annually in India. Grape is harvested almost all the year
round. If not all the varieties, one or more varieties are always available at any given time of the year.However, the
major proportion of produce, mainly of Anab-e-Shahi, Thompson Seedless and its clones, is harvested during March-
April from the hot tropical region, which contributes more than 70 percent of the total harvest.
4. Post Harvest Management
4.1 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.
4.2 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.
4.3 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%).
4.4 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.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.

CHAPTER - III
MARKET POTENTIAL
Grapes start arriving in the market in the middle of January and the peak time of their availability is February-March.
The season during which grapes are available can be extended to April-May by keeping the produce in cold storage.
More than 80 percent of the total production is consumed as table grapes in India, and more than 70 percent of the
total production is harvested in March-April.
Many grape cultivators prefer the domestic market because of speedy payment, though the prices are on the lower
side. The current market price for grapes is Rs 50 per kg as against Rs 60 to Rs 65 in the international market.
Approximately, 2.5 percent (22,000 t) of fresh grapes are exported to the Middle East and European countries. The
rest of the produce is marketed within the country. Grapes are exported through three different agencies viz., Grower
Exporters, Growers’ Cooperatives and the Trader exporters. These agencies have established their own facilities for
pre-cooling and cold storage in the vicinity of major production sites.
Grapes are also exported to overseas destination markets from the Mumbai port. The major grape exporting
countries in the world are Chile, Italy, USA, South Africa, Turkey and
Spain, while the major grape importing countries are USA, UK, Netherlands, Germany and the Russian Federation.
India exports grapes to the Netherlands, the UK, UAE, Bangladesh,
Saudi Arabia, Belgium, etc. In terms of volume of exports, Bangladesh is the major buyer followed by the
Netherlands, the UK and UAE.The government has established agri-export zones for enhancing the export of grapes.
Farmers of Maharashtra in cooperation with the Maharashtra State Agriculture Marketing Board (MSAMB) have
branded the grapes they produce as ‘Maha Grape,’ which is widely preferred in the external market.
In view of the great potential for export to the European Union, there is a need to maintain
superior quality of grapes, free from pesticide residues, etc.
Essentially, the real prospect of this sector lies in our efforts to find more external markets for grapes and their value-
added products. There is a huge demand for grapes in Hong Kong, Singapore, Malaysia, etc. India needs to exploit
this opportunity through modern marketing methods.

CHAPTER - IV
SWOT ANALYSIS
Strengths:
• High returns from the crop compared to traditional food crops.
• The soil and climatic situation in the Indian regions are very suitable for production of mango.
• The Governments are providing strong support to commercial cultivation of fruit crops through various policies and
schemes.
• The grape industry is providing livelihood opportunities to its growers and those involved in its marketing channel.
Opportunities:
• The Government of India is supporting the grape industry of the country by following ways-I. Encourage and support
the farmers for establishing the vineyards and installing drip irrigation systems by providing soft loans and subsidies.
II. Provide research support to sustain the productivity of grapes under adverse situations. III. Promote and support
the export of fresh grapes by training the growers and providing soft loans and subsidies for pre-cooling and cold
storage facilities.
• Diversification of Grape uses, as wine/juice and export of table grapes can ease the marketing problems.
• Technologies to achieve high productivity are currently available.
• Scope for double cropping in certain regions and harvesting round the year in certain varieties is practically feasible.
• Technologies to produce export quality grapes and quality raisins are available.
• Support is available from the Agriculture & Processed Food Products Export Development Authority (APEDA) and
MSAMB with regard to modern packing methods; in order to improve the quality of grapes.
Weakness
• The orchard owner farmers do not give required attention and care in using required inputs and adopting improved
cultural practices in their mango orchards, except using some insecticides to protect the fruits from insects. Most
farmers lack technical knowledge and training in development of commercial mango orchards.
• There is unavailability of expert technical guidance available to the farmers in addressing production related issues
which demand immediate attention (like insect damage, pests, etc).
• Poor post-harvest management infrastructure. Due to the perishable nature of the products it’s important to have
enough transportation and good logistics facilities.
• Lack of effective farmers’ organization for initiating collective/group marketing.
• There is need for developing processing industries as there are higher post harvest losses in handling and
marketing.
• Smaller land holdings limiting the scope for adoption of intensive crop production
Threats
• The risk of losing a crop due to unprecedented changes in weather is very high.
• Soil and water salinity and drought are the impediments in the direction of expansion of area.
• In recent years, insects attack on plant and fruit is reported which are not responding to chemicals being used, this
is posing great threat to sustainability of the crop in the long run.
• Exploitation by middlemen in the market chain.
• Over supply during the harvest season resulting in very low prices.

CHAPTER - V
ECONOMICS OF THE PROJECT
A. BASIS & PRESUMPTIONS
PARTICULARS UNIT QUANTITY
I. Techno-economics parameters
Name of Variety THOMPSON
Plant Density High (spacing 2.5m * 2.5m)
Total no of plants per acre 444
Playback period 5 years plus moratorium for the 3 year
Rate of Interest % 12
II. Expenditure norms
Land Levelling Rs. per 5,000
Fencing & Gate per running 40
Planting Material Rs/seedling 10
Manures & fertilizers Rs/acre 9,000
Insecticides & pesticides Rs/acre 4,000
Farm Implements Rs/acre 10,000
Bowers System Rs/acre 120,000
Manpower Rs/acre 9,000
III. Income Norms
Sale price of Grape fruits tonn 50,000
Yield per acre after 4th year tonn 7

B. TOTAL COST OF PROJECT
PARTICULAR UNIT UNIT RATE QUANTITY AMOUNT
Rs. Rs.
I. Capital Cost
1. Land Own
2. Land Development
Soil Levelling & digging per acre 5,000 4 20,000
Fencing & gate running sq.ft 40 1,600 64,000
84,000
3. Irrigation
Tube Well,Pipeline,Elecric pump &
electrification
180,000
WaterStorage tank 40,000
220,000
4. Cost of Drip Irrigation per acre 25,000 4 100,000
100,000
5. Infrastucture
Labour room & godown sq.ft. 800 100 80,000
Farm implements/Power tiller Ls. 10,000 4 40,000
120,000
Total Capital Cost 524,000
II. Working Capital
(Cultivation cost in the first year is a part of the project Cost and in 2nd & 3rd year will be financed from intercropping
revenue.)
1. Cost of planting material Nos. 10 1,776 17,760
2. Mannures & Fertilizers acre 9,000 4 36,000
3. Insectisides & Pesticides acre 4,000 4 16,000
4. Manpower(For Land etc.) acre 9,000 4 36,000
5. Overhead(Electricity, Water etc) acre 5,000 4 20,000
6. Intercropping cost acre 5,000 4 20,000
7. Contengencies acre 5,000 4 20,000
165,760
TOTAL COST OF PROJECT 689,760

C. MEANS OF FINANCE
PARTICULARS UNIT UNIT RATE AMOUNT Rs.
Term loan % 75 517,320
Own contribution % 25 172,440
TOTAL 689,760

D. PROJECTED PROFITABILITY
(Value in Rs.)
PARTICULARS UNIT
UNIT
RATE
QUANTIT
Y
IYEAR IIYEAR IIIYEAR IVYEAR
V-
VIIIYEAR
Income
Production Capacity % 0 0 0 50 90
a. Sales of Units Ton 50,000 28 - - - 700,000
1,260,00
0
b. Income from Intercropping acre 35,000 4 140,000 140,000 140,000 140,000 -
TOTAL 140,000 140,000 140,000 840,000
1,260,00
0
Expenditure
a. Cost of Planting material Nos. 10 1,776 17,760 400 - - -
b. Mannures and Fertilisers acre 9,000 4 28,000 36,000 36,000 36,000 36,000
c. Insectisides and Pesticides acre 4,000 4 16,000 16,000 16,000 16,000 16,000
d. Manpower(For Land Preparation etc.) acre 9,000 4 48,000 36,000 36,000 36,000 36,000
e. Packaging,Transportation acre 12,000 20,000
f. Overhead(Electricity, Water etc.) acre 5,000 4 20,000 20,000 20,000 20,000 20,000
g. Intercropping cost acre 10,000 4 40,000 40,000 40,000 40,000 -
h. Contengencies acre 5,000 4 20,000 20,000 20,000 20,000 20,000
TOTAL 189,760 168,000 168,000 180,000 148,000
Net Income -49,760 -28,000 -28,000 660,000
1,112,00
0

E. FINANCIAL ANALYSIS
(Value in Rs.)
PARTICULAR I YEAR II YEAR III YEAR IV YEAR V -VIII YEAR
Capital Costs 524,000
Recurring Costs 189,760 168,000 168,000 180,000 148,000
TOTAL COST 713,760 168,000 168,000 180,000 148,000
Benefit 140,000 140,000 140,000 840,000 1,260,000
Depreciated Value of Building, 46,840
Fencing, borewell etc 10%
Depreciated Value of Equipments@15% 181,684
Closing Stock value 10% Depreciation 181,600
TOTAL BENEFIT 140,000 140,000 140,000 840,000 1,670,124
NET BENEFIT 1,670,124 -573,760 -28,000 -28,000 1,522,124
Discounting Factor@15% 0.87 0.76 0.66 0.57 0.5
NPV Cost at 15% DF 620,971 127,680 110,880 102,600 74,000
NPV Benefits at 15% DF 121,800 106,400 92,400 478,800 835,062
NPW at 15% DF 598331
BCR at 15% DF 1.58:1
IRR% 40.86

F. TERM LOAN REPAYMENT
Rate of interst - % per annum : 12
Opening balance of term loan : 517,320
(Value in Rs.)
Year
Loan
Outstanding
Gross
Surplus
Principal Interest
Total
Repayment
Net Surplus DSCR
1 517,320 - - 62,078 62,078 - -
2 517,320 - - 62,078 62,078 - -
3 517,320 - - 62,078 62,078 - -
4 517,320 660,000 103,464 62,078 165,542 494,458 4.0
5 413,856 1,112,000 103,464 49,663 111,741 1,000,259 10.0
6 310,392 1,112,000 103,464 37,247 99,325 1,012,675 11.2
7 206,928 1,112,000 103,464 24,831 86,909 1,025,091 12.8
8 103,464 1,112,000 103,464 12,416 74,494 1,037,506 14.9
Average DSCR 10.6

Grape farming 16-02_2015_20_35

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