Karnataka's grape growers seek 'Vidarbha-type' relief package

The drought-hit grape farmers seek Rs 650-crore loan waiver

Grape growers in Karnataka, the country’s second largest producer of grapes, have appealed to the union agriculture ministry to bail them out from financial distress. About 7,000 farmers who lost their crops due to drought over the  decade have demanded a ‘Vidarbha’ type of package, waiving bank loans.

Since 2000, grape growers have been facing water shortage for their crops. The situation worsened in the last two years due to severe drought. Almost 90 per cent of the loans from nationalised banks and cooperative banks have turned non-performing assets (NPAs). The total amount (both principal and interest) would be around Rs 650 crore, said Abhaykumar S Nandrekar, president, Karnataka Grape Growers Association.

“Over the last decade, farmers were forced to bring water from far away places in tankers to save their orchards as the groundwater reserve depleted alarmingly in northern districts like Bagalkot, Bijapur, Koppal, Belgaum, Bidar and  Gulbarga. Even in 2006-07, we had requested agriculture minister Sharad Pawar to waive our loans (both principal and interest) along with Vidarbha farmers. But we did not get any relief,” said Nandrekar.

He added it would be very difficult for the growers to survive and retain their crops if the government did not waive farmers’ loans immediately.

Karnataka accounts for an estimated 27 per cent of India’s grape production at 330,000 tonnes, is behind Maharashtra which contributes to 63 per cent of the national output. The state is known for growing popular varieties such as Thompson, Sharad, Sonaka, and Tas-e-Ganesh, among others, which have huge demand in overseas markets. About 70 per cent of the production is converted into raisins (dry grapes).

As a result of severe drought for the past few years, the area under grapes in Karnataka has declined to 13,569 hectares from 18,100 hectares in 2010. Of this, about 8,000 hectares area has been affected by severe drought, causing hardship to nearly 7,000 farmers.

The Association recently met Pawar along with Karnataka chief minister Siddaramaiah and sought an urgent package for the farmers.

As an immediate measure, the state government has sought an assistance of Rs 10 crore from the Centre, which will be used to provide the farmers irrigation facilities, mulching and shade net for the grape wines to prevent loss of moisture.

The state government has also sought a special package consisting of waiver of loan and interest availed from cooperative and nationalised banks, assistance for adopting good management practices, support for rainwater harvesting and support for post-harvest management techniques, among others.