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