Madhya Pradesh's first winery trips on red tape

A group farmers in Titri village (5 km from Ratlam district) is facing inordinate delay in setting up the state's first winery project. This is reportedly due to the indifference of the district administration to a land issue of the company.

If the district administration supported the farmers, the winery could have taken shape this year.

"Now the crop is over for the year and we will have to wait another year," said a company source on condition of anonymity, adding, "An application for land diversion has been pending with the sub-divisional magistrate for the last four months but we have received only a lukewarm response."

The company proposes to invest Rs 1.03 crore in the project with contributory funds and a bank loan.

Fifteen local farmers had formed a company, Patel Wine & Fruit Processing Industry, to make use of the policy. The farmers grow Australian varieties of grape for wine, Shiraj and Cabernet Blonc, on 20 acres.

The state government had recently announced a wine policy in the hope of attracting big-ticket investment from makers of champagne but till now, there had been no takers.

"The wine we produce is of international quality and if the government supports us, we will be able to start commercial production," Motilal Patidar, chairman, Patel Wine, said.

"To start the first winery in the state, we want only 5,000 square feet land diversion since we will expand into the proposed food park, which is in the vicinity. We will invest Rs 1.03 crore, Rs 25 lakh from contributions and Rs 75 lakh from a bank loan. However, the company will be able to file its bank loan only when the land diversion has been cleared," he said.

Most of the points in Madhya Pradesh's wine policy are copied from Maharashtra's. Madhya Pradesh also pushed the word "wine" out of the ambit of the Excise Act and the activity is now comes under food processing in the state.