A study of marketing cost and marketing efficiency of grape wine in Maharashtra

Grape (Vitis vinifera) is a significant fruit crop in India, ranking third in cultivation after citrus and banana. With a global production of approximately 68.9 million tonnes, grapes are a major fruit crop worldwide. In India, grapes are cultivated over an area of 139 thousand hectares, yielding about 2920 thousand tonnes in 2017-18 (NHB). Maharashtra is the leading state in grape production, contributing 62.7 percent of the national output. Major grape-growing districts in Maharashtra include Nashik, Sangli, Pune, Ahmednagar, and Solapur. Given its perishable nature, grapes are processed into products such as wine, raisins, and juice. Maharashtra hosts 78 of India’s 95 wine industries. A study focusing on the marketing costs of grape wine processed product in five major districts revealed that fewer middlemen in the distribution channels lead to higher profit margins for producers. The data from 14 grape wine industries indicated that direct producer-to-consumer sales (Channel I) yielded the highest profit margins and marketing efficiency compared to channels involving retailers and wholesalers. It showed that reduced intermediary involvement increased the producer’s profit margin. The study concluded that direct marketing channels are more beneficial for grape producers, highlighting the efficiency and profitability of minimizing middlemen in the supply chain. This finding underscores the importance of streamlining distribution to enhance income for grape farmers in Maharashtra.