NABARD recommends Rs100-crore restructuring package for Maharashtra’s wine industry
Alekh Angre 30 March 2011

Report, made on the instruction of agriculture minister, is being studied by the government; wine producers’ association is optimistic about implementation

The wine industry in Maharashtra which is reeling under debt, is hopeful of receiving a bailout from the government, following the recommendation of a Rs100-crore restructuring package by the National Bank for Agriculture and Rural Development (NABARD).

NABARD has made its report on the directions of Union agriculture minister Sharad Pawar and Subodh Kant Sahay, who was then minister for food processing, in the context of the liquidity crunch facing the wine industry.

Several meetings were held between NABARD officials and state-level bank committees to assess the situation, and the report focuses on the financial requirements of the industry. The All India Wine Producers' Association (AIWPA) is optimistic that the proposed recommendations will be implemented.

An official source said, "The draft report addressing the restructuring package for the wine industry in Maharashtra has been submitted to the government of India."

Jagdish Holkar, president, AIWPA, told Moneylife, "We have received the draft report prepared by NABARD on the wine industry in Maharashtra. It is a draft report and everything is under consideration. The proposals mainly address the measures for the sustainability and stability of the industry. Accordingly, our association along with NABARD had asked for a Rs100-crore package of interest subvention at 4% and debt restructuring of the small-size wineries and grape growers. This has been considered in the draft report."

The association is optimistic over the implementation of proposals made by NABARD. "The wine industry is a forward linkage to agricultural production and prevailing high interest rates are unaffordable for us. Earlier, due to unpaid loans, banks were not ready to provide us fresh loans, but with these recommendations we are hopeful of further loan assistance," Mr Holkar said.

As per the draft report, working capital loans, term loans, working demand loans and grape growers' loan dues would be part of the interest subvention plan.

Mr Holkar also told Moneylife that "the state chief minister has spoken to the association and he has assured us that after studying the report the role of state and centre will be decided."

When contacted for his response over the expected assistance from the government, Subhash Arora, a wine expert who also runs the Indian Wine Academy, said, "Any help from any one to the Maharashtra wine industry is always welcome. But it should be a one-off thing and not be taken time and again."

Comments
Amar Hanmantrao Mane
1 decade ago




But What is about wine grape grower farmer & farmers Loan
vijay k ingle
1 decade ago
till date the nabard is not directly marketing the schemes,all the schems are coming through bankers only.today i am running the agriclinic & agribusiness but till date no any banker has given money for this scheme .the turnover is 6600000 in year 2010-11.is really possible to the common person to set up the winery ? please reply.
R Balakrishnan
1 decade ago
Throwing good money after bad. Wine industry is dodo. When will we realise that we cannot make great wine. The Indage and the Sulas, we tolerate or praise simply becos we do not know better.
The promoters of these units (Indage etc) are worth billions. The cos seem to be in continuous restructuring.
Free Helpline
Legal Credit
Feedback