Karnataka to have wine policy

Karnataka government proposes to introduce an exclusive policy for wine-making sector. The policy is being announced to encourage the grape cultivation and wine manufacturing in the state.

Announcing this in his budget speech, Karnataka's deputy chief minister and finance minister B S Yediyurappa said, "There is a need to utilise the emerging opportunities in the area of production and processing of horticultural crops."

Grapes are grown extensively in the state and to support the sector, the government will come out with an exclusive policy for wine manufacturing. In order to support cultivation of the ongoing drip irrigation scheme, the government will provide Rs 44 crore, he said.

The scheme will be implemented in conjunction with the scheme of supporting agro-processing of horticultural crops. In Kolar and Bijapur, the present scheme of providing 100 per cent subsidy will continue and in the remaining districts subsidy will be enhanced from 50 per cent to 75 per cent to farmers up to a limit of two hectares.

To provide long-term support to the development of horticulture farms the state will provide Rs 5.75 crore, he said.

The finance minister also announced a grant of Rs 10 crore to the Karnataka Agricultural Produce Export Corporation (Kapec) for developing infrastructure to promote agriculture exports.

He also announced the formulation of a separate policy to boost agricultural research and education. The private sector will be encouraged to set up agriculture and horticulture colleges.

To support research on organic farming, an advanced centre for research on organic farming will be established at Shimoga at a cost of Rs 2 crore, Yediyurappa said.