CHAPTER I INTRODUCTION CHAPTER ONE INTRODUCTION 1.1 Background of the Study Wine is an ancient potation particularly for the classic Old World wine regions of the world. The Old World wines belong to the legendary winemaking regions of France, Italy, Spain, Germany and Austria. The vintners from this region perceive wine as a mark of cultural heritage and emphasize on the importance of "terroir" in making the Old World wines unique. In contrast the New World wine regions of United States, Australia, Chile, Argentina and South Africa highlight the versatility of the wine grape varietals and the expertise of the winemaker in producing such fine wines. Truong (2012) noted that the countries belonging to the New World wine region took competitive advantage of the off - cycle growing seasons in the southern hemisphere to boost the export market of their wines. Additionally, the New World nations like United States and Australia benefitted from ample land while Chile. Argentina and South Africa benefitted from cheap labour that gave further fillip to winemaking in these countries. The study of Truong (2012) further stated that the appearance of the two new super powers - China and and their developing taste for wine has been instrumental in reshaping the global wine industry. Still in an emerging stage, the domestic wine industry is primarily oriented towards the domestic market and less towards exports. It is chiefly driven by positive consumer trends induced by rise in discretionary spending potential (Jacob, 2008; Berry, 2010). Traditionally, wine does not figure prominently in the Indian potation and the consumption trend is heavily weighted towards liquors like whisky and rum. However, it is expected that in the coming years wine would supplement rather than replace these spirits (Truong, 2012). Wine production in the country is concentrated in the states of and . Maharashtra is in the forefront in domestic wine production with evolving as the main wine district. The wine boom in Maharashtra State may be attributed to the 'Maharashtra Grape Processing Policy', 2001 which encouraged a host of small vineyard owners in to branch into winemaking. However these small wine producers were not aware of the fundamentals of wine business as a result of which they became burdened with huge financial losses. The situation was worsened due to the terror attacks of 2008 and economic slowdown of 2009 which slackened wine sales throughout the country. On the contrary, the deep

1 pocketed medium to large scale wineries in Nashik District were able to overcome the dropping sales period by employing several strategic moves. Such circumstances led to an unbalanced growth wherein the wineries became extremely polarized in Nashik District. The overall situation pointed to a growth pattern that severely lacked inclusiveness and benefit for all the industry participants.

1.2 The Purpose of the Study The lopsided growth of the wine sector in Nashik District remained in news particularly in the years between 2009 and 2011. The wine industry in Nashik District was marked by the emergence of a single large player while the smaller wineries were growing sick and shutting down their business. During this period a number of articles appeared in periodicals emphasizing the need to enquire about the growing sickness of the small scale wineries in Nashik District and to device alternative strategies for improvement. In the light of these information acquired from various quarters, it seemed necessary to undertake a deep probe into the root causes of the growing sickness of the smaller wineries in Nashik District. Additionally, the phenomenon of urban micro winery which is known to give impetus to small winemaking units by expanding the consumer base through 'taste and tourism' appeared to be a plausible solution. Considering the success of the urban micro wineries in the New World countries of United States, Australia and New Zealand, it was thought appropriate to follow a detailed investigation on the applicability of this concept to the smaller wineries. Besides this, it was also felt that there has been a lack of micro level study- on the prime wine producing areas in Nashik District and a dearth of academic research on the socio - economic aspects and environmental impacts of the wineries. All these factors depicted the wine scenario in Nashik District as a dynamic field of study, worth an investigarion.

1.3 Research Objectives The prime objectives set for the thesis are: 1. To identify the wine producing areas in Nashik District. 2. To study the leading wineries and assess their role in the development of Indian wine industry. 3. To trace the potential areas of expansion of the wineries in and around Nashik District.

2 4. To understand the socio-economic aspects and environmental impacts of wine industry with special reference to wine tourism.

1.4 Methodology The present research work is based on both primary and secondary sources of data. The wine producing talukas of Nashik District were chosen as the spatial unit of study. Out of the 37 wineries located in the study area, a total of 25 wineries were surveyed in 2012, 2015 and 2016. These wineries are spread over 5 talukas of Nashik District. Random sampling technique was employed for selecting the wineries to collect data. Primary data were collected from intensive winery surveys with the help of well framed questionnaires (Appendix I). Workers employed in the wine sector of the study area were also surveyed, among which 37 were vineyard workers and 50 were winery workers (Appendix II). A total of 41 respondents also participated in the questionnaire survey on environmental impacts of wine tourism, ranging from local farmers, winery workers to facility managers of large and medium scale wineries and small scale wine producers (Appendix III). In addition, a survey of 104 wine tourists was also conducted (Appendix IV). The database was updated in 2016. A total of 4 field visits were conducted, each of which had duration of 7 to 10 days. Personal interviews were conducted with the winery owners, winery facility managers, winery employees, vineyard workers and wine tourists. Focus group discussion with small scale wine producers were also arranged to get insight about the growing sickness of the smaller wineries. The database was updated at regular intervals through personal communication like telephonic conversation and email correspondence. This firsthand information helped to outline the general performance of the leading wineries, to understand the socio-economic conditions of the workers, to profile the wine tourists and assess the overall environmental impact in the vicinity of the wineries. The data generated through questionnaire survey were analysed with the help of descriptive statistical procedures using MS - Excel application. Data pertaining to environmental aspects were processed by quantitative techniques of Fisher's"t" test employing Minitab statistical software. Attitudinal survey of the host population (local winery employees) on the possible environmental impacts of wine tourism on the fragile rural countryside of Nashik District was carried out using Likert scale and

3 the inferences were statistically represented. This was accompanied by qualitative interpretation of data obtained through field observation during frequent visits.

Data pertaining to the investment pattern in the winery and the wine production cost as well as returns on investment in winemaking were collected through personal interview of the winery proprietor. Numerical analysis and subsequent tabular representation of the data was done to show winery assets, cost structure, returns on investment and profits. Financial analysis such as net present value (NPV) was done to test the profitability of the project and internal rate of return (IRR) was worked out to evaluate the financial feasibility of the investment in the winery. Additionally payback period (PBP) was also determined from a risk analysis perspective as longer pay back periods are generally not desirable from investment positions. Problem solving techniques like 'root cause analysis' was undertaken for the purpose of identifying the underlying factors for the increasing sickness of the small scale wineries in the study area. For the present work, the 'root cause analysis' of the sick small scale wineries has been done by means of the '5 Whys' problem solving approach and the entire investigation was modelled using a fishbone diagram. The '5 Whys' approach involves repeatedly questioning 'whys" until the primary 'root' cause is defined. GIS platform is being used for the purpose of mapping of the surveyed wineries. The winery site positions were derived from Google earth and their geographical locations were confirmed during the field visits with the help of GPS survey. They were subsequently mapped in relation to the viniculture zones using Arc GIS software. Wine grape growing area delineation was based on data obtained from National Research Centre for Grapes (NRCG), Indian Grape Processing Board (IGPB) and GPS fieldwork. Keeping in view the concept of waste minimization for yielding positive environmental footprints, the alternative use of wine grape pomace was discussed in terms of grape seed oil. The market value of the wine grape pomace was calculated by considering the number of grape seed oil containers sold, which then multiplied by the unit retail price gave an idea of the revenue from grape seed oil sales. In the process, the market value of the wine grape pomace was also revealed.

4 Secondary data were also collected from various sources such as the Indian Grape Processing Board (IGPB) , National Research Centre for Grapes (NRCG) Pune, Indian Wine Academy, Agriculture and Horticulture Department, journals, industry publications and newspaper articles. Data relating to volume of wine production, case sales and export by the wineries were collected from winery visits to outline the performance and growth of the key wineries. Assessment of the Indian wine market was done by using the market segmentation model to understand its stage of growth and the current scenario of the Indian wine industry. In depth survey of literature was undertaken to understand the concept of 'urban micro winery'. The tracing of the potential areas of expansion of the wineries in and around Nashik District for the development of urban micro wineries has been done on the basis of parameters like ease of doing business index, per capita wine consumption in Maharashtra and consumer response to urban micro winery setup. The urban micro winery model is used to evaluate the potential areas of expansion of the wineries in and around Nashik District as well as near the growing wine markets.

1.5 Study Area Maharashtra is the largest producer of wine in the country and the bulk of the production is concentrated in its Nashik District. There is a distinct clustering of the country's vineyards and wineries in Nashik, Dindori, Niphad and Igatpuri talukas of Nashik District. The proliferation of wineries in the district is due to easy access to the grape growing areas, excellent transport facilities and better marketability. It is therefore important to gain in depth knowledge of the physical and socio - cultural setting of the district in order to understand the potentials for growth of wine industry in this region.

1.5.1 Location Nashik District occupies the northwestern part of the Maharashtra State covering a total geographical area of 15,530 sq Kms (Fig. 1.1). The district is the third largest in the state that extends from 18° 33' N to 20° 53' N latitude and 73° 16' E to 75° 16' E longitude with an average elevation of 565 metres above mean sea level (www.nashik.nic.in, 2016). The district came into existence in 1869 with the city of Nashik as the district headquarters.

5 Maharashtra

Tehsil Headquarters District Headquarter

-4 ".HI

Fig. 1.1 Location map of the study area

6 At present Nashik District comprises of a total of fifteen talukas of which eight are recognised as tribal talukas (Surgana, Peth, Igatpuri, Kalwan, Satana, Dindori, Trimbakeshwar and Nashik). The Nashik District is bounded by in the north, Jalgaon and Aurangabad districts in the east, in the south, in the south - west and the State in the north - west.

1.5.2 Geology A key feature of the geology of Maharashtra is the predominance of Deccan trap formations belonging to the late Cretaceous and early Tertiary periods. The trap basalts overlay the pre - Trappean lithology and occupy more than two - third of the geographical area of the state. In 1833, Sykes coined the term 'Deccan Traps' to describe the stepped topography of the volcanic terrain of Deccan region (Kale, 2002). The basaltic plateau lies over the Archaean base mostly formed of crystalline gneisses and schists. The structural basement is frequently exposed in the eastern flanks of the state where the plateau height decreases as the basaltic lava cover thins out to bare the underlying rocks (Dikshit, 1986). From a geological stand point, the entire Nashik District lies in the Great Traps of Deccan Peninsula. The trap flows are not absolutely horizontal but tend to have a gentle dip (<1°) away from the Nashik area. The flows are southward dipping along the Ghat crestline, westward dipping west of the Panvel Flexure and in the southern margins of the Trap province the lava flow exhibits northward dip (GSI, 1976 and Kale, 2002). According to the studies carried out by Widdowson and Cox (1996) and Kale (2002), considerable post-Trap uplift in the Nashik region led to the reversal of the flow dips in the southern extremities of the Traps. Walker (1969) identified the Deccan Trap flows as either compound amygdaloidal that are widespread in the Nashik region or simple, compact flows as found in the southern and eastern parts of Maharashtra. Similar opinion is also shared by Kale (2002). The Trap flow that covers the Nashik area is massive, poorly jointed and amygdaloidal with cavities developed inside the basalts (Dikshit, 1986). Beane et al. (1986) and Kale (2002) noted three chief stratigraphic sections of the Deccan Traps - Subgroup that is exposed in the Nashik - Kalsubai area with amygdaloidal compound flows and the other two

7 being Subgroup and Wai Subgroup with simple flows. Furthermore the radial flow dips together with the distribution and thickness of the stratigraphic components indicate the occurrence of a volcanic center near Nashik above the Indian plate which underwent a northward drift over the mantle plume (Beane et al., 1986; Subbarao et al., 1994; Kale, 2002). According to Kale (2002), the Deccan eruptive activity was initiated under the Kalsubai - Nashik area on the northward migrating Indian plate passing over a hotspot. The model proposed by Watts and Cox (1989) and supported by Kale (2002) suggested that the eruptive spot may have been as high as 5.5 km. Therefore the crystalline basalts give the most remarkable geological characteristic to Nashik District. Essentially of volcanic origin, the flows consist of either compact, stratified basalts or an earthy trap. In the western territory of the district, the basaltic flows have given rise to flat-topped ranges interspersed with valleys running from west to east. The slopes of these trap hills overlooking the tend to be lofty and precipitous while the opposite eastern slopes are mostly broken and gentle. The existence of the tabular strata of the hills, with similar elevation above the sea level, several kilometres away suggests that in the geological past these ranges were part of a vast plateau. The most notable example in this case is the southern uplands towards the (Nashik District Gazetteer, 1883 and 1975). In some trap flows, particularly in the highlands of Satmalas and Kalsubai crags, the basaltic lava occur in columnar structure which has eventually weathered into various shapes. It may be noted that throughout Nashik District a varying Hthological characteristic of the basalt is observed ranging from tabular trap of fine texture with fair polish that changes to coarse and nodular in several parts. Numerous dyke formations intrude the Nashik trap flows that tend to be brittle and often split into oblong regular masses (Nashik District Gazetteer, 1883 and 1975). The earthy beds also form an important geological aspect of this area. Several hills are found which have either flat top or small peak rising from a tableland; the summits of these hills are generally formed of earthy trap. Finally, it is held that the Sahyadrian escarpment represents a continental edge that was formed by rifting in the late Cretaceous period and it stood farther west in the geological past that gradually receded eastwards (Subrahmanya. 1987; Radhakrishna, 1991; Widdowson, 1997; Kale, 2002). The presence of remnant

8 higher peaks west of the main scarp signifies the eastward retreat of the Sahyadrian crest line. According to Kale (2002), the scarp retreat has been facilitated by the higher energy levels and erosive capacity of the west flowing rivers of the Deccan. The vigorous headward erosion by the west flowing steep streams along with backwasting of their valleywalls and mass wasting processes favoured the eastward scarp retreat.

1.5.3 Topography Physiographically, the Sahyadrian range along with the offshoots thrown eastwards from its crestline shape the basic topographic feature of Maharashtra including Nashik District. These projecting arms from the principal axis of the form the interfluves between the major rivers draining the area therefore giving rise to a landscape marked with alternating river valleys and water divides. Eastwards these interfluves become low and narrow while the valley plains flatten out (Dikshit, 1986). The mighty Ghats separate the longitudinal Konkan strip from the plateau popularly called the Desh (Jog et al., 2002). The highly dissected terrain adjacent to the western edge of the Sahyadris in the Nashik District is referred to as the Downghat Konkan. This region covers the talukas of Peth, Surgana and northwestern parts of Dindori and Nashik where the landscape consists of a series of alternating river valleys and interfluves sculpted out by the fast flowing streams draining this region (Nashik District Gazetteer, 1883 and 1975). The Sahyadrian range forms the most important hill system, oriented from north to south, which gives out three prominent ridges eastwards - in the extreme north is Selbari range which stands as the boundary between Nashik and Dhule districts, followed by the Satmala range which runs right across the district and down south the Kalsubai hills in the Igatpuri taluka of the district. Apart from the Sahyadris, the general direction of the ranges crossing the district of Nashik tend to be from west to east or southwest to northeast with the maximum altitude reached towards the west (Fig 1.2) (Nashik District Gazetteer. 1975).

9 Source: SRTM DF.M Fig. 1.2 Relief map of study area These highlands are mostly scarped with either flat summits or small peaks. The flat topped ridges act as water divides between the major rivers of the area. They have steeper northern slopes with gently dipping surfaces at the base forming pediments which merge with the river terraces on either side of the stream channels. Vigorous slope wash processes and subsequent slope retreat has led to the development of such pediment surfaces (Jog et al., 2002). Dikshit (1986) noted that the north facing scarp bases frequently form pediments under arid and semi-arid conditions.

10 The Selbari Range and Dolbari Hills The Selbari range traverses across the northern fringes of the Nashik District and attains a height of about 1300 metres in the west but gradually lowers to half that height towards the east. The highest peaks reach the elevation of 1,331 metres in the Mangi Tungi hill. Towards the eastern flanks of the range are the Galna hills lying at about 710 metres of elevation. South of the Selbari and Galna ridge lies a lower line of parallel hills known as the Dolbari hills. This range include within its fold several high peaks like the fort peak (1613 metres), Hattimal (1315 metres), Kutra dongar (1190 metres), Kumbaria (982 metres), Nocholas dongar (1122 metres), Paphira (1000 metres) and Adolia (777 metres) (Nashik District Gazetteer, 1883 and 1975).

Satmala Range The Satmala range branches off from the Sahyadri in an easterly and southeasterly direction and runs right across the district. It passes through the talukas of Chandwad, Dindori, Kalwan, Niphad and Nandgaon. It is distinguished from the northern ranges by the general absence of flat summits. This range has several lofty peaks like the (1451 metres), Saptashring (1420 metres). Indrai (1410 metres) and Chandwad (1217 metres). This range is also famed for its numerous twin forts like the Ankai - Tankai, Raulia - Jaulia, Alang - Kulang and further north the Salher - and Mangia - Tungia to name a few. The northern most limit of the Sahyadris is marked by the Salher - Mulher peaks in the district (Jog et al., 2002). The Satmalas end in the east in low isolated hills formed due to intense headward erosion and dissecting action of the rivers Panjan and Maniad (Nashik District Gazetteer, 1883 and 1975).

The Trimbak - Range The Trimbak - Anjaneri range is located in the southern parts of the district that extends eastwards from Bhaskargad (1086 metres) to include peaks like Harish fort (1113 metres) and Brahma dongar (1210 metre) and finally merges with three isolated hills in the eastern extremities. Lying close by the Sahyadrian scarp face are the two important peaks namely Trimbak (1294 metres) and Anjaneri (1300 metres). On its north-eastern side the Trimbak range forms a fine amphitheatre enclosing the town of Trimbakeshwar at the base. This place

11 also marks the source of the (Nashik District Gazetteer, 1883 and 1975).aneri is a fine mass of trap rock flanked by lofty scarps with a flat top. Further south the Anjaneri branches off in three distinct ridges forming the Anjaneri Trishul where the average elevation is about 900 metres. South of the Anjaneri Trishul, beyond Darna River and its headwater streams are three radiating offshoots that border the Vaitarna River. The northern arm includes the Kavanai or the hill of Kamakshidevi in Igatpuri taluka. At the southern extremities of the district a precipitous rock face extends eastwards at an average elevation of 1500 metres and includes the Kalsubai hills standing at 1647 metres. Beside these leading ranges there exist numerous isolated hills and ridges that act as water divide between the streams and rivers draining the district (Nashik District Gazetteer, 1975).

Girna Basin The Girna basin is flanked by the Sahyadris on the west, the Selbaris on the north and the Satmalas on the south. This region is traversed by spurs and ridges branching off from the Sahyadris in eastward and southeastward fashion. At present most of these uplands have been reduced to remnant structures. This is due to the intense dissection by the east flowing streams as they follow the lines of structural weakness. The majority of these streams have an initial southerly or south-easterly flow followed by an easterly course which eventually changes into a north-easterly direction on approaching the district boundary (Nashik District Gazetteer, 1883 and 1975).

Godavari Basin The Godavari basin lies to the south of the Satmalas adjoining the eastern flanks of the Sahyadrian scarp. The entire landscape is marked by broad alluvial valleys particularly in the south central and eastern parts of the district. The Godavari basin of Nashik District consists of four sub - regions namely the Godavari Valley Proper, the Northern sub region. Upper Darna basin and Sinnar Plateau. The Godavari valley is located in the talukas of Nashik and Niphad where the land has fertile soils. The Northern sub region includes the southern slopes of the Satmalas that lies in the talukas of Dindori, Chandwad and most parts of Yeola. This area is traversed by the left bank tributaries of river Godavari

12 where Banganga and Kadva are the two major streams. The Upper Darna basin lies in the Igatpuri taluka where Darna River along with its two tributaries Unduhol and Dadva have given rise to a steep landscape. The plateau of Sinnar has a rolling landscape often with rough gradients (Nashik District Gazetteer. 1883 and 1975).

1.5.4 Drainage The underlying basaltic rock structure of the area has given rise to the distinct drainage pattern of the district. The basalts, frequently inter-bedded with ash layers, exhibit three sets of master joints, running in directions north-south (strike direction), north-west, south-east, and north-northeast, south-southwest. The streams have therefore etched their valleys along these lines of weakness and follow nearly straight courses down the three major joint directions; also the bends at the confluences of most streamlet with its main stream are usually rectangular (Nashik District Gazetteer, 1883 and 1975). The Girna and Godavari along with their several tributaries drain the Nashik District while the Satmalas act as the watershed between them. In addition, numerous Konkan rivers also flow through the district westwards into the Arabian Sea (Fig. 1.3). The northern territory of Nashik District is drained by Girna which is an important tributary of Tapi. The drainage basin formed of Girna and its tributaries namely Tambdi, Punand, Aram, Mosam, Panjan and Maniad is useful for irrigation and productive for agriculture. The Girna has its source in the southwest of Hatgad in the Sahyadris. In the upper reaches Girna receives several tributaries and flows nearly eastwards in a narrow water channel. After draining through Kalwan, Satana and Malegaon talukas, the river turns north to meet river Tapi. Aram River is formed of four streams that traverse a short southerly course to turn east and southeast to feed Girna east of Thengode. Mosam is the northernmost tributary of Girna that rises in the Sahyadris south of Hanuman hill and flows eastwards while receiving numerous streamlets on its way to join Girna just below Malegaon. The Panjan and Maniad are the two easternmost tributaries of Girna (Nashik District Gazetteer, 1883 and 1975).

13 f.

D

j T z_ Si.nn.-i- SKIM (M\\

Fig. 1.3 Drainage of the study area

14 The Godavari forms the largest river system within the state of Maharashtra that originates below the western scarp of the Trimbak amphitheatre and flows through the Ghat Matha country cutting a deep and rocky bed. It takes a course from west northwest to east southeast which is marked with abandoned channels and old meanders (Jog et al., 2002). It then receives the Kikvi tributary on the north, the Kashyapi tributary at Gangapur and to the east the river is met by Alandi at Jalalpur. Further downstream the Godavari plunges into a deep gorge (10 metres) beyond which are exposed several dykes of trap lava origin at the river beds. About 10 kilometres east of Gangapur, the Godavari traverses the holy town of Nashik and further downstream the river flows through wider channels flanked by earthy banks where is met by Nasardi and Darna on the right and Banganga and Kadva on the left (Nashik District Gazetteer, 1883 and 1975). Therefore the Upper Godavari includes the catchment areas of Darna and Kadva as its major tributaries. Even though the Darna is a short length tributary, it flows through a wide open river valley collecting its head waters from the Ghat zone and Kalsubai hills that stands as the highest peak in the state (Jog et al., 2002). The Darna rises from the crest of the Sahyadris south east of Igatpuri and follows a long winding course through wide sandy beds with low broken banks before it empties into the Godavari. Jog et al. (2002) is of the opinion that the extensive valley flats of Darna particularly between Nashik to Thalghat are well planated. The Banganga is a north bank tributary of Godavari that rises northwest of Ramsej hill and flows easterly passing by Ozar and Sukene where it meets the Godavari. The Kadva has its source in the Sahyadris to the northwest of Dindori and flows through a rocky but wide bed bordered by rocky banks receiving numerous feeders on its way. The western tract of the district adjoining the Konkan coast is drained by numerous streams and streamlets that descend down the western scarp of the Sahyadris to flow into the Arabian Sea. These west flowing Konkan rivers include Damanganga, Vaitarna, Chondi, Kavera, Sasu, Man, Nar, Par, Barik, Val and Bhima which flow through deep and steep channels over rocky and winding beds with their courses marked with ravines and falls (Nashik District Gazetteer. 1883 and 1975).

15 1.5.5 Climate The climate varies significantly in different parts of the district though there prevails a general dryness for most times of the year barring the southwest monsoon season. The cold season runs from December to February followed by the hot dry season from March to May. The monsoonal showers occur from June through September followed by pleasant weather in the post-monsoon months of October and November. Average rainfall of the district ranges between 2600 and 3000 mm. Relative humidity varies between 43-62%. Temperatures begin to rise rapidly from late February; May is the hottest month and the summer heat gradually becomes intense particularly in the eastern parts of the district with relatively lower elevations. The maximum summer temperatures rise to 42.5°C. Occasional afternoon thundershowers bring some relief from the oppressive heat in May and early June till the burst of the south-west monsoon. Winds tend to be light or moderate in most parts of the year though the force strengthens in late summer and in the south-west monsoon season. From November temperatures decrease rapidly to mark the onset of winter season with December being the coldest month. The minimum winter temperature often falls below 5°C (www.nashik.nic.in, 2016 and Nashik District Gazetteer, 1975). Such climatic conditions are ideal for viticulture which has led Nashik District to become the most important grape cluster in the country. Correia. (2012) studied the effects of the climatic parameters on vineyards and drew the following conclusions: • Temperature plays a vital role in viticulture and the resulting wine quality. Higher temperatures deteriorate the quality of wine grapes. Under such circumstances, cooling effect from nearby water bodies like lakes, dams or canals could prove beneficial. During the survey, it was found that most vineyards sought a water point location to escape the soaring summer temperatures. • Heavy rains damage the vineyards. Unseasonal rain showers are also harmful for vine growth. Excessive rainfall increases the soil moisture resulting in profuse basal vegetation growth that hampers the grapevines. The survey results showed that unseasonal rains with hailstorms destroy the vineyards. It was also found that most of the vineyards in the study area lie in the zones receiving rainfall between 550-2250mm (Fig 1.4). In

16 areas of inadequate rainfall, the vineyards are being supplemented by irrigation. • High humidity is also detrimental for the grape vines as fog, damp and condensation exposes them at the risk of fungus growth. However humidity conditions in the study area are conducive to vine growth. • Light and variable winds promote vine growth and berry development by ventilating the canopy, maintaining equitable temperature around the vines and illuminating the basal leaves and berries. On the contrary, strong winds physically damage the grape vines. Winds are usually light in the district barring the monsoon times.

17 • Winery Vineyar • Tensil B -• 55C 551 - 75 • 751 • 10

Souree:!MD NRCO utd Field Survej Fig. 1.4 Distribution of grape growing region and wineries with re

18 1.5.6 Soil The Nasik District being part of the Deccan plateau, the trap rock forms the predominant parent material for soil genesis. The soil formation is profoundly influenced by either the climatic parameters or the topographical characteristics of the region. The soils in the river valleys of Godavari, Kadva and Upper Girna and Mosam basins are rich, friable and fertile. In the rest of the district the soil is loose and coarse that becomes prone to leaching and erosion. Light shallow soils generally predominate the hill sides that turn thin and marginal at still higher slopes (Nashik District Gazetteer, 1883 and 1975). Prasad et al., (1995) carried out the characterization and classification of the soils of Nashik District. Red soils are found in the northwestern section of the district while the black soils occurred in its southeastern parts (Fig. 1.5). The red soils are found underneath the forest cover. Some patches are used for millet cultivation. The black soils are cultivated for sorghum and pulses under rain fed conditions. The black soils also support grape farming when irrigated. The study further stated that the soils in and around Gangapur qualify for Vertisol and suborder Usterts. This soil is clayey (> 30% clay content), deep (>50 cm depth) and well - drained that support commercial scale grape cultivation. The study also pointed out that deficiency of micronutrients and salinity problems associated with this soil often affects grapevine growth.

19 ; Trimbakesh

Tehsil Bo Soil Code. IP v • / > | 9 P 10 U \^>^ 21 H ! 28 P

— Source:Soil Region Map(National Atlas of India)

Fig. 1.5 Soil types of study area

20 1.5.7 Forests The forest cover of the Nashik District is an important economic resource that yields timber and fuel wood. Teak is the chief specie that occurs in pure strands or found mixed with Ain, Sadada, Hed, Khair, Dhavda and bamboo. The forests lying below the Ghat area are productive but those found above the Ghat on the slopes of the east trending hills are poorly stocked. In general the forest cover dwindles eastwards whereby the eastern margins of the district are practically left bare of forests. The forests of Nashik District may be broadly differentiated into three distinct types according to their occurrence in three different zones as influenced by factors like rainfall and topography (Nashik District Gazetteer, 1975).

• The western margins of the district adjoining the windward slope of the Western Ghats form the "Below Ghat Areas" that has Southern Tropical Moist Deciduous Forests. This area supports forests that come under "Group 3-A-Southern Tropical Moist Deciduous Forests" of Champion's classification where the dominants are the deciduous species. • The eastern slopes of Sahyadris consist of open dry deciduous forests of Teak, Ain, Dhavda, Sadada, Salai and Modal. • The eastern zone has scrub forests with species like Salai and dhavda that are locally consumed as fuel wood.

1.5.8 Population Population or human resource plays a significant role in the economic development of any region as it influences the supply of labour for various productive activities and also impacts the general consumption patterns of the region. The demographics of the Nashik District indicate that in 2011, it had a population of 6,107,187 with male and female numbers at 3,157,186 and 2,950,001 respectively. The Nashik District population constituted about 5.43 percent of the total population of Maharashtra. A change of 22.30 percent in the population was noticed when compared to the population of 2001 census (Census, 2011).

21 Source: District Census Handbook 201 I Fig. 1.6 Population density in study area

The growing population also had a direct bearing on the population density of the district (Fig. 1.6). With a total area of 15,530 sq. Km, the population density of Nashik District stood at 393 persons/sq. km in 2011 compared to 322 persons/sq. km of 2001. According to 2011 census, 42.53% of the total population of the district lives in urban areas while 57.47% lives in rural areas of villages.

1.5.9 Agriculture Nashik District is an important agricultural zone in the state of Maharashtra famed for grapes, onion, sugar cane, pomegranate, rice and flowers. Grapes, onions, pomegranate and sugarcane are the major cash crops produced in this zone

22 (www.nashikmidc.com, 2016). The general landuse pattern in Nashik District is given in the table 1.1

Table 1. 1 Land use in Nashik District, 2009-10

Particulars Total ('OOOHectares)

a) Non-agricultural land 16

b) Barren uncultivated land 128

c) Land useful for cultivation, but not cultivated 123

d) Permanent Pasture growing land 128

e) Land under miscellaneous tree crops 16

f) Current fallow land 67

g) Other follow land 56

h) Net area sown 865

i) Irrigated area 244

j) Gross cropped area 874

Source: SLUSI, 2014

In general agricultural infrastructure is well developed in the talukas of Niphad, Nashik, Dindori, Chandwad and Malegaon while the hilly talukas of Peth, Surgana, Kalwan, Trimbak and Igatpuri lack access to major infrastructural facilities (Pagar, 2015). The talukas of Dindori and Nashik have a high percentage of gross cropped area while Peth and Trimbak have lesser areas under crops due to their hilly terrain. In Niphad the percentage of area under major cash crops is significant and it also has the highest irrigated area in the district. Dindori has the highest cropping intensity which may be attributed to the recent growth of horticulture in this area. Usage of prime agricultural inputs like irrigated water and farm fertilizers are high in the talukas of Niphad and Nashik. These two talukas also make extensive use of electric pumps for irrigation and therefore draws considerable electricity for powering farming activities. Good irrigation facilities through rivers, dams, tanks, canals, tube wells and wells in Nashik District have resulted in assured water supply to the farmlands. The talukas of Niphad, Dindori and Nashik have excellent irrigation system by sourcing water from

23 river Godavari, Nandur Madhmeshwar Reservoir, Khadak Malegaon Project, Gangapur canal, Palkhed canal, Ozarkhed left bank canal, Nandur Madhmeshwar express canal, Vaghad right bank canal and Kadva right bank canal. Application of farm machineries like tractors and iron ploughs are common in the talukas of Niphad, Dindori, Nashik and Nandgaon. Finance is recognized as the life blood of all economic activities and therefore agriculture also requires credit. The number of agricultural credit societies is highest in the taluka of Niphad that provides loans to the farmers for bringing improvement on their land, digging wells, installing tube wells and for the purchase of seeds, fertilizers, pesticides and other farm inputs and implements. Cooperative farming is also common in Nashik District which involves pooling of resources and joint management to carry out agricultural operations (Pagar. 2015 and Field Survey, 2012). In the last decade, wine grapes have acquired much prominence in the agricultural economy of the district. In addition to table grapes and raisin grapes, wine grapes are also cultivated in the vineyards of Niphad, Dindori, and Nashik talukas. The Grape Processing Industrial Policy of the Maharashtra Government in 2001 and the establishment of Vinchur Wine Park at Niphad provided fillip to viticulture in the district and also encouraged the cultivation and value addition to wine grapes by processing into wine. The wine grapes are supplied to the local wineries for making wine. In most cases, these local wineries are owned by small landholders who converted their table grape vineyards to wine grape varieties for branching into winemaking. Therefore the majority of the small wineries are run by the first generation of entrepreneurs that came from the grape farming community of the district. In the talukas of Kalwan, Deola and Satana several farmers have shifted to pomegranate cultivation from sugarcane and grape crops due to erratic and insufficient rainfall. Some farmers have ventured into floriculture whereby roses are grown in greenhouses for export to the Middle East. Climate in this region also permits allied activities such as dairy farming, poultry and sheep and goat rearing that thrives on the booming Mumbai market lying at the doorstep of the district (Field Survey, 2012 and www.nashik.nic.in, 2016).

1.5.10 Industry' Industrial development is often viewed as an engine for economic growth and regional prosperity. The Maharashtra Industrial Development Corporation (MIDC), a

24 brainchild of the Government of Maharashtra, was formed in 1962 to promote industrial growth in all the districts of the State by providing basic industrial infrastructure at affordable rates. The MIDC has played a crucial role in attracting several ventures in the Nashik District that enabled the general progress of the region through employment generation and revenue growth. The industrial scenario in the Nashik District is on an upswing (Table 1.2).The Nashik MIDC developed industrial zones in various parts of the district (Table 1.3) and it is expected that the new industrial areas at Malegaon, Surgana, Addl. Sinnar and Manmad would provide fresh impetus to industrial expansion in Nashik District (Table 1.4). Success of Nashik MIDC is evident from the thriving business of several prestigious labels operating in the MIDC area like Mahindra and Mahindra, MICO (Bosch), Crompton Greaves Ltd.. Siemens Ltd., Jindal Ltd., Atlas Ltd., Glaxo Smithkline Pharma Ltd.. Samsonite Ltd.. Schneider Electricals Ltd., Kirloskar Oil Engines Ltd., Seagrams Distillers Ltd.. CEAT Ltd., etc (www.nashikmidc.com, 2016). There are several cooperative estates operating in the district at Nashik, Malegaon, Manmad, Sinnar. Yeola, Pimpalgaon. Kalwan and Ozar. The Nashik Industrial Co-operative Estate (NICE) have been boosting to the co-operative sector of the district ever since its inception. The district also has spatial clusters of micro and small enterprises namely the Paithani Saree cluster at Yeola, the raisin making cluster at Nashik, the winery cluster at Vinchur (Table 1.5), the textile cluster and the silver ornament cluster (MSME-DI, 2014). The cluster development program enabled the micro and small units to benefit from efficient networking, quality and technological upgradation and market opportunities.

Table 1. 2 Industrial scenario of Nashik District (July, 2012)

SI. No. Industrial Units No. of Registered Units

1 MSME Units

a) Micro 9331

b) Small 5228

c) Medium 33

2 Large Scale Units 178

3 Cottage and Village Units 26216

SME-DI, 2014

25 Tablel. 3 Existing status of industrial areas in Nashik District

Industrial Area No. of plots No. of Industrial Commercial Areas (Ha.) developed plots Rate per Sq. Rate per allotted feet Sq. feet Rs.

Satpur 635.73 975 963 2660/- 7980/-

Ambad 515.50 1246 1185 2660/- 7980/-

Sinnar 510.08 802 647 865/- 1730/-

Dindori 32.72 44 43 195/- 385/-

Vinchur 133.99 94 64 90/- 175/-

Peth 5.46 44 30 40/- 80/-

Source: MSI^AE-Dl, 20 14

Table 1. 4 Details of the proposed industrial area

Name of area Proposed Industrial area

Proposed area (in Ha.) Acquired area (in Ha.)

Malegaon 190 71.65

Surgana 10 10

Addl. Sinnar 1509.15 119.49

Manmad 12.06 -

MSME-DI, 2014

26 Table 1. 5 Winery cluster, Vinchur, Niphad, (Nashik District)

Principal Product of the Wine Cluster

Name of the Nashik Valley Wine Cluster, Nashik Association

No. of Functional Units Units - 5 in the Cluster

Employment in Cluster Direct - 40 Nos.

Indirect - 75 Nos.

Major At present wineries from Nashik Cluster is finding it very Issues/Requirement difficult to sustain the competitive market due to lack of facilities like testing, processing, quality checking, modernized technology, packaging etc.

Presence of Institutions Institute of Oenology-France, Vinltaly-Italy, IGPB and for Aid AIWPA, MITCON technical consultancy etc.

Thrust Areas Trust Building amongst cluster actors, capacity building, study tour and exposure visit, market development, technology and quality upgradation etc.

Problems and • Lack of awareness and willingness in India about Wine Constraints Tourism and Wine Culture

• New sunrise industry

• Non-availability of adequate infrastructure and processing facility.

• Lack of awareness of improved technology etc.

Source: MSME-DI, 2014

Until recently, the industries in Nashik District were traditional agro based confined to milling and ginning that flourished by liberal Government grants and excellent intrastructural facilities. However today Nashik District has a varied industrial base ranging from agro based and animal based through mineral based to service based industries. In recent years, Nasik has also carved a niche for itself as India's "Napa Valley" and locally established wine brands such as Sula and York have

27 attained international acclaim. Efforts are being made to promote the growth of an export-oriented rose farming and wine industry in the district.

1.5.11 Transport and Communication The excellent network of roadways and railways that criss-cross the district enable good connectivity and easy accessibility of this region (Fig. 1.7). Nashik District has particularly a good network of road transport with two national highways forming major arteries. Nashik Road Station is on the the Mumbai-Bhusawal route (which further runs to Delhi or Kolkata) of the Central Railways. Other important railway stations of the district include Deolali railway station serving the military cantonment area, Manmad railway junction for connections to the holy town of Shridi. Trains connect Nashik to several major cities like Mumbai, Delhi, Nagpur, Kolkata and Kanpur.

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II ^J j 1.6 Review of Literature A review of the research work carried out in the earlier period relevant to the present study has been discussed in this section. Numerous publications, both print and digital, were referred to that provided valuable insights to this study. The review of literature helped to provide a theoretical framework to conduct the present study. Bhosale (2001) in his cluster development study of India highlighted the Nashik grape cluster. His work provided a detailed description of the grape growing areas of Nashik District and discussed the favourable factors that led to its rise as the prime viticulture zone of India. His study also outlined the basic framework of the Nashik grape cluster with special reference to its various linkages. Finally he concluded with the general performance of the Nashik grape cluster and recommended measures to improve it through technology upgradation and effective networking. Shikhamany (2005) identified grape cultivation as one of the most lucrative farming enterprises in our country. The author outlined the three major agro-climatic zones that are conducive for grape growing namely sub-tropical region, hot tropical region and mild tropical region. Furthermore, the author distinguished the hot tropical region as a major viticulture zone which includes 70 % of its area under grape farming in India. The study also discussed the various aspects of vineyard management and the supportive role of the government in developing viticulture particularly for export sale in the overseas market. Adsule et al. (2013) in their work depicted the geographical spread of the major wine grape cultivation areas in India with special emphasis on viniculture in Maharashtra. He identified the main wine cultivars grown in the country. He conducted a detailed study on the viticulture aspects that influence wine production in terms of rootstock usage, nutrient supply and water inputs for wine grapes, vineyard management, disease and pest mitigation in wine grapes, application of bioregulators for quality enhancement and post harvest care of wine grapes. He also discussed the suitability of different wine grapes for the production of varietal and blended wines. Karibasappa et al. (2011) reviewed the nascent Indian wine industry in terms of area, production, marketing and consumption of wines in our country. They also discussed the performance of the leading wineries, the importance of the wine parks for developing the medium and small scale wineries and the general prospects of

30 growth of the wine sector. Their report stated the factors critical for the success of the indigenous wine industry. Besides this, they also studied the wine grape farming practices and winemaking process prevalent in India and highlighted the chief characteristics of the popular wines made in the country. Jacob (2008) in the Rabobank Food and Agri Review discussed the general consumption pattern of the Indian wine consumers and identified the primary wine selling outlets in the country. Furthermore it stated that favourable government policy and infrastructural support together with rising domestic demand for wine are the key drivers to the growth of the Indian wine industry. The author also pointed out the challenges faced by the wineries in the wine production process due to inadequate standadisation. Correia (2012) conducted a study in Madeira, Portugal to assess the various landscape characteristics that influence vineyard microclimate which in turn affect the wine grape quality. The study showed a strong correlation between vineyard microclimate and the quality of grapes produced by it. His work helps to guide vineyard site selection. Jacob and Soman (2006) studied the production, area and yield of grapes at national and international scales. They focussed on value addition to grapes in terms of winemaking and raisin making. They also discussed the major problems faced in the grape value chain particularly table grapes and wine. Their work gives a clear understanding of the comparative advantages of value addition to wine grapes for the production of wine and the popular wine cultivars farmed in India. Bordelon (2009) stated that the key to success in vineyard operation is to produce consistently quality fruit sets of a marketable grape cultivar. His work discussed the main considerations for establishing a wine grape vineyard for commercial operation with emphasis on vineyard site selection and soil types suitable for grape farming. He also suggested that grape cultivar selection must be according to cultivar adaptation and market demand. Cheng et al. (2010) pointed out that the social stigma related to alcohol production and consumption in our country has eased over time and the market for domestically produced wine is on the rise. They conducted an agricultural analysis of the major viniculture areas of Maharashtra and Karnataka and suggested avenues for agricultural expansion in the northern parts of Uttar Pradesh where the physical conditions are conducive to grape growing. The authors undertook a business

31 feasibility assessment and concluded that the wine firms can reap profits after a period of three years from winery establishment through proper planning and execution. Baughman et al. (2000) assessed the impact of winemaking in the Californian counties of Santa Barbara, Napa and Sonoma. Their work dealt with wine grape cultivation, wine production and marketing. Their work also focused on the impact on environmental quality by the California wine industry. They concluded with the recommendation to develop a sustainable wine label that would ensure minimal fertilizer and pesticide application, optimal water use and erosion management. Truong (2012) presented an overview of the global wine industry highlighting the top five wine producers in the world namely Italy, France, Spain, the United States and China. He further added that in recent times there has been a fall in the production and consumption of wine in Italy, France, Germany and Spain - countries collectively referred to as Old World. On the contrary, in the New World countries of the United States, Australia, South Africa, Latin American nations of Argentina and Chile wine production and consumption has been on a rise. He compared the processes of wine production by the Old World and the New World and the varying strategies adopted by them to succeed in the global market. He also identified future trends in the developing markets of China and India where wine is emerging as a beverage-of-choice. Berry (2010) in the Agriculture and Agri-Food Canada report, prepared under the Government of Canada, explored business opportunities in the Indian wine market from the standpoint of Canadian wine exporters. He pointed out that India has an evolving consumer population with an already high proportion of food and beverage expenditure as a result there is an opportunistic market for a number of goods including wine. He studied the key players of the domestic wine industry, gave an overview of the consumer market and noted the changing retail landscape that has boosted wine consumption in the country. Gore (2008) discussed the dynamics of the Indian wine market on the basis of the forces of demand and supply. He noted that India presents bright market opportunities ready to be tapped. He conducted a market analysis, reviewed the trade policies and commented on the tax regime prevalent in our country. Tate (2013) studied the export market of Indian wines and focused on the two prime wine producing states namely Maharashtra and Karnataka. He also noted that the rising overseas market and the progressive domestic retail market have fuelled the

32 robust growth of the wine sector. He pointed out the major challenges faced by the indigenous wine industry and noted the prospects for foreign investment in the wine sector. He concluded that a rise in direct foreign investment in India's wine industry and greater international tie-ups would lead to vital market solutions in terms of capital, technology and expertise. Halstead et al. (2011) in Wine Intelligence White Paper introduced the global wine market evaluation model which served as a tool to aid investment strategies in the development of international wine markets. They studied nearly 40 international wine markets from a consumer perspective to devise a stage-of-evolution market model that distinguished five distinct phases of development ranging from new emerging and emerging through high growth established to mature established and traditional established. In their work they pointed out that India leads the new emerging market segment where wine is steadily becoming a mainstream beverage in the society. Burzynska (2014) discussed the basic tenets of boutique winery. He pointed out that small wine firms operate on boutique production of limited quantity of finest quality wines that command a premium price in the niche markets. In his opinion the boutique wineries strategically keep their wine production low to sustain the demand for their fine wines in the niche markets. He further added that the boutique wineries incur high production costs which are offset by premium prices of their fine wines. Zeithaml (1998) considered consumer perception of price, quality and value are vital determinants to condition shopping behaviour and product choice. His work presented evidence from past research and insights from an exploratory investigation to define and relate price, quality and value. His prime focus was consumer"s perspective of the price of a product, perceived quality or consumer's judgment about the product's overall excellence and the perceived value or utility derived from the product. He established a relationship among price, perceived quality and perceived value to formulate a model that guided purchase decision of the consumers. Kenkel et al. (2008) studied the small winemaking firms in the United States and elaborated the concept of co-operative wineries in relation to small scale operations. In his view, a group of small wineries may pool their resources to form a co-operative and reap the benefits of economies of scale through consolidation. He pointed out that winery co-operatives have improved market access, higher purchasing power, bulk procurement of grapes and minimize risks in business. These

33 advantages are critical to small winemaking units as the start-up costs for winery operations and the lagged cash outflow associated with the time between the procurement of wine grapes and initial sale of wine often lead to mounting debt capital and subsequently a setback in business. Morss (2012) studied the dramatic changes that occurred post 1980s to shape the global wine industry. He pointed out that from the Old World nations of France, Italy, Spain and Germany winemaking as an industry spread worldwide to include within its fold the New World countries of the United States, Australia, New Zealand, South Africa, Argentina, Chile and China. In his opinion erstwhile consolidation in wine business had taken place due to large economies of scale in marketing and distribution. However at present the world wine industry witnessed much specialization in grape growing and winemaking as entrepreneurs began to develop their own team of winemakers to seek good grapes for making fine wines. Crowley (2012) presented an overview of the 'winescape' in California with special emphasis on the vineyards and wineries that came up in the uplands, sub humid and semiarid zones and urban fringes in southern California. He also mentioned that the bulk of the wineries in this region operated as small enterprises and is geared towards urban micro winery operations. According to him, the phenomenon of urban micro winery has been instrumental in developing the wine sector of this region as winemakers procure finest grapes from renowned Californian grape growers to make premium wines. McKinsey (2008) presented a detailed account of urban micro wineries emphasizing on the locational shift from the rural countryside to suburban areas in search of quick returns in business. In his opinion the essence of urban micro wineries lie in making and selling wine in an urban setting from sourced grapes obtained from multiple vineyards. He noted the key advantages of the urban wineries over their rural counterparts and added that an urban setting ensures easy access to nearby markets with assured footfalls; an opportunity missed out in the far flung rural estate wineries. Mahajan et al. (2010) discussed the post harvest problems of table grapes such as berry shattering, stem browning and grape decay that limit their sale in distant markets. They studied several aspects of post harvest care and management of grapes under cold storage conditions to extend their storage life. Their work revealed that freshly harvested grapes when packed in corrugated fibre board boxes lined with low- density polyethylene liner along with grape guards and cold stored at 0-2°C and

34 relative humidity of 90-95%, the fruit sets undergo minimal spoilage. They further added that such cold storage conditions are highly effective in maintaining the overall berry freshness up to a period of 50 days. Hall et al. (2000) offered the most comprehensive definition of wine tourism that has a universal acceptance. According to them a host of factors motivate the wine tourists to visit the wine region, the most notable ones being wine tasting and experiencing the attributes of the wine region. Their work considered wine tourism experience as visiting vineyards and touring wineries as well as attending wine festivals and wine shows in which wine tasting and wine related experiences form the highlight of the trip. Kim and Kim (2002) studied wine tourism in Michigan with the aim to estimate the economic impact of wine tourism in Michigan. According to them, the small wineries with limited access to various on-trade and off-trade outlets may choose wine tourism as a marketing strategy for promoting their wines. The wineries gain as the tourist traffic helps to boost wine sales through direct cellar door sales and also foster brand loyalty. They further added that a key advantage of the wine tourists is that they can taste and purchase wines from the tasting room of the wineries, an experience that they miss in retail outlets. Presenza et al. (2010) stated that an increase in tourists* environmental sensitiveness along with the growing demand for nature and authenticity has given a fillip to sustainable forms of tourism such as farm tourism, rural tourism and wine tourism. They also added that promoting tourism in the countryside helps in local development and diversification of the rural economy. Additionally sustainable tourism in the rural regions has minimal environmental impacts and is mindful of the region's territorial assets and local cultures. With regard to wine tourism they held the opinion that it is generally associated with short-range tourism and established wine tourist routes facilitate greater connectivity and better accessibility of the tourism destinations. Getz and Brown (2006) perceived wine tourism simultaneously a tool of enquiry from the consumer standpoint, a strategy to develop the wine regions and an opportunity to increase wine sales directly from the producer to the consumer. They further added that wine tourists are interested in wineries that are visitor friendly. equipped with knowledgeable staff, offer wine related activities like wine festivals. located in appealing countryside amidst vineyards and conduct group tours.

35 Gadakh et al. (2015) presented a detailed account on the various tourist resources of Nashik city with special emphasis on the religious and cultural attractions found in and around the city. According to them, Nashik is endowed with beautiful landscape scenery and enjoys a cool pleasant climate which adds to its attractiveness. They also highlighted the tourism potential of Igatpuri, situated about 35 kms from the city within Nashik District that has positioned itself as a hill resort in this region. They further added that the city has several recreational facilities to draw tourists. Zanni (2004) studied tourism pattern in Italy which offers a multitude of tourism products. The country attracts high tourist flows towards its coastal and cultural attractions while considerable Italian rural spaces that are endowed with immense tourism potential are unexplored by the tourist traffic. The rural countryside may be developed for eco tourism by promoting wine tourism, gastronomic tourism or green tourism. Davidson (1999) studied the cultivation of wine grapes in Australia. He compared the three major viticulture techniques practiced namely conventional. sustainable and organic farming of wine grapes. He evaluated each of them individually with respect to fertilizer application, fungal disease control, insect control and weed control. Naveen (2009) studied the farming of wine grapes in Bijapur district of Karnataka. His work also considered the economics of value addition to wine grape in terms of winemaking. He drew a comparison between wine grapes and table grapes with respect to material inputs required for their growth. He also stated that wine cultivars require less water than their table counterparts. Franson (2008) studied the various uses of water to conduct winery operations. Winemaking demands sanitary conditions and therefore wineries require huge quantities of water for cleaning and rinsing in order to avoid wine spoilage. According to him normal industry standards are set at 6 litres of water needed to produce 1 litre of wine. Killebrew and Wolff (2010) studied intensification in agriculture such as monoculture that necessitates the use of inputs like inorganic fertilizers, pesticides. irrigation systems and high yielding seed varieties. They stated that application of these farm inputs adversely impacts the biodiversity in terms of reduced habitat for insects and other fauna thereby leading to increased dependency on pesticides. They further added that the widespread use of pesticides harms animal and human health by

36 accumulating in the soils and leaching into the nearby water bodies. Besides application of inorganic fertilizers tend to increase soil acidification due to nitrate leaching, degrades water quality and aquatic ecosystems due to polluted run-off and contributes to smog, ozone, acid rain, nitrogen dioxide emissions. Melamane et al. (2007) discussed the basic characteristics of wine distillery wastewater and reviewed the various techniques of treating this liquid waste. They focused on the seasonal nature of the winery operations that results in variable discharge of wastewater in terms of volume and composition. Therefore they suggested wineries must employ wastewater treatment systems that are able to cope up with fluctuating wastewater loading regimes and the systems must also be able to function efficiently under successive episodes of start-ups and shut-downs as well as periods of inactivity. Gensch and Sacher (2010) discussed the functional design of the soakpit. They stated the prerequisite for the construction of a soak pit to be the base must lie 1.5 m above the groundwater table. Moreover, it should be built at least 30 m away from sources of drinking water to avoid cross-contamination. Waller (2006) discussed several aspects of sustainable tourism in terms of rural, farm and green tourism. According to him tourism in the rural and semi-rural countryside fringing the cities provides a refreshing experience for the urban residents. He pointed out that farmstead tours are often conducted by the agricultural communities to generate additional income. In his opinion green tourism embodies the basic elements of sustainability as it employs tourism as a tool to involve the visitors positively by respecting and conserving the local natural resources. Nagarale and Harpale (2012) undertook an assessment of environmental impact of tourism on Bhimashankar and Lonavala in of Maharashtra with the aid of Likert scale. They focused on the available tourism infrastructure in these tourist centres and studied the environmental impacts in terms of a host of parameters using Likert Scale. The authors based their study on factors like overcrowding, congestion and dirtiness, noise, air and water pollution, sewage disposal, availability of clean drinking water, strain on public utility services, recreational and entertainment facilities, road conditions, parking facilities, growth of slums, danger to freely moving cattle, rising number of religious institutions and hotels and modernization of infrastructure. They concluded that tourism in

37 Bhimashankar and Lonavala is yielding positive impacts and benefitting the host population. Dwyer et al. (2014) assessed the market potential of grape waste alternatives in terms of a food supplement (Bioflavia) that is popular in the Canadian market. The study was based on the volume of red grape pomace derived from the total amount of its production in Ontario and British Colombia The study revealed that as the demand for natural products rise, the profitability of such eco-friendly items stand a fair chance to succeed in business. VornDick (2014) presented an overview of the urban micro winery trend that is sweeping across the world in recent times. In his opinion, the setting up of urban micro wineries is often viewed as a practical and cost- effective decision compared to the "'prohibitively expensive and traditional rural winery - vineyard combination". The study took into consideration the various models of urban micro wineries bifurcating them into two broad categories as "purist" model and "blended'* model. The study concluded that urban micro winery has become a globalised phenomenon with over 200 urban micro wineries currently in operation on four continents and in six different countries. The author estimated a double digit growth rate of 10 - 25% for the urban wineries and positively correlated the establishment of urban micro wineries with high wine consumption areas.

38