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Time of India
3 days ago
- Business
- Time of India
Sula Vineyards charts path to 100% sustainable winemaking amid climate pressures
Climate change is affecting nearly every region in the world. Nashik, known as the wine capital of India, is also feeling the heat. In the last 15 years, almost 50 seasons have been affected by climate change, according to Anil Ghanwat , President, Shetkari Sanghatana, a Maharashtra-based farmers' union. 'Sometimes there are heavy rains, sometimes there is a drought, sometimes the temperature drops below zero degrees in some areas,' he said. Excessive heat is resulting in overripe grapes and unbalanced wines, while increased temperature raises the risk of fungal diseases in grapevines. 'This calls for active efforts needed to be taken by farmers,' he emphasised. Sula Vineyards , a major winery in Nashik, is working on mitigating the impacts of climate change on its grape farms. Given the frequent droughts and water scarcity in the region, CEO Rajeev Samant said that they are focusing on water management. Sula has employed advanced water recycling, considering India's monsoon-dependent climate, and it aims to reduce water usage per bottle produced. Not just water management, Sula is also working on energy conservation. 'The methane that is captured during the treatment of wastewater is transformed into clean electricity. This reduces the reliance on natural resources that are subject to fluctuations and enhances the climate resilience of the operation as a whole,' Samant said. Sula works with over 2,800 acres of contracted vineyards and has processed more than 11,000 tonnes of grapes in FY25. According to the company, it is committed to achieving net zero emissions by 2050. The company is a member of the International Wineries for Climate Action and also part of the United Nations-led 'Race to Zero' global campaign. Live Events Samant claimed that Sula Vineyards has incorporated sustainability into every aspect of winemaking. Samant claimed that Sula Vineyards has incorporated sustainability into every aspect of winemaking. In FY25, Sula relied on solar power for 65% of its energy needs; this number, as per Samant, is likely to increase to 75% in FY26. Power-saving initiatives, such as the Burkert temperature control system, have already resulted in a saving of 37% of power in the cellar, and further growth is anticipated, he said. According to him, Sula consumed 5% less water per case in FY25. The company aims to bring it down by 6% in FY26, as it looks to utilise 20% recycled water, he said. 'We have also installed a methane capture facility that generated 35,000 power units in FY25 and aims to increase by 44% in FY26. We also have a localised glass bottle supply chain, which reduces its carbon footprint and supports local economies. The company increased its use of rewash bottles by 24% in FY25 and aims to do so to an even greater extent,' he said. Low-alcohol wines The wine manufacturer has also dabbled in low-alcohol wines, which offer a sustainable and healthier alternative to health-conscious consumers and have considerably less environmental impact. Sula's Source Moscato and Chenin Blanc Reserve are known for lighter, refreshing profiles. 'There is a shift towards light, approachable wines that seem to be gaining traction. Moving towards lower-alcohol wines can be good for consumers, especially from a health and wellness standpoint, as well as from an environmental sustainability perspective. These wines need fewer resources to be put into fermentation and greatly more freedom regarding harvesting and ripening of the grapes,' he said. Sula has also dabbled in low-alcohol wines, which offer a sustainable and healthier alternative to health-conscious consumers and have considerably less environmental impact. However, he highlighted the challenges of sustaining these green efforts due to the high upfront costs of technologies like solar panels, methane capture systems, and EV fleet conversion. 'Scaling these efforts while maintaining cost-efficiency and consistent product quality can also be complex,' he said. 'Moreover, as climate change intensifies, managing grape quality and yield sustainably remains a long-term challenge,' he added. Nevertheless, Sula maintains an optimistic outlook for the future. In FY26 and the following years, the company aims to reduce power consumption per case sold by an additional 11%, increase its EV fleet share from 45% to 55%, achieve a 6% reduction in water usage per case while enhancing water recycling to 20%, and realise a 44% increase in electricity generation from methane capture. 'These actions will aid Sula in becoming a pioneer in sustainable innovation while also assisting in meeting the set target of achieving carbon net-zero by 2050,' he said.
Indian Express
01-05-2025
- Business
- Indian Express
Why are bad debts rising in Maharashtra's farm sector
Just five years after the last farm loan waiver in Maharashtra, demand for another such debt relief is gaining momentum. Farmers and farm leaders say lower-than-expected farm incomes have left them with little money in hand, leading to a rise in bad loans. A 'bad loan' is basically a loan that has not been repaid even after the grace period for repayment has expired. What are crop loans and how do they help farmers? Farm loan or crop loan refers to the short-duration finance extended to the farm sector before the start of the agricultural cycle. Banks extend this loan to farmers to meet capital expenditure needs for seeds, fertilisers, farm labour, etc. Agriculture finance comes under priority sector lending, and banks have to compulsorily lend to the sector. Crop loans are usually for a period of 11 months with a minimal rate of interest of 5 per cent, of which 2 per cent is subvented by the central government and another 2 per cent by the state government. Also, in Maharashtra, crop loan upto Rs 3 lakh has been made interest-free since 2021. Farmers are expected to repay the principal amount (along with interest if the principal is above Rs 3 lakh) within 11 months, failing which the loan is deemed outstanding. Before the start of the agricultural lending circle (mostly from April- May), banks are given targets for farm loans along with other priority sector lending. For the financial year 2024-25, the annual target for crop loan was Rs 1,77,342 crore, of which till December 31, 2024, banks had loaned out Rs 1,42,286 crore, or 80 per cent of their target. This mechanism has been put in place to ensure easy access to institutional finance for farmers, who would otherwise turn to private moneylenders. These moneylenders charge interest between 10-15 per cent, and farmers often end up locked in a cycle of endless debt. Studies have shown a strong link between farm distress and lack of easy finance. What is the status of outstanding farm loans in Maharashtra now? As of December 31, 2024, banks have reported Rs 2,63,203 crore of outstanding agriculture loans. This is almost double of the Rs 1,40,413 crore reported in 2019, when the last farm loan waiver was announced by the state government. Farmers with outstanding loans are unable to raise fresh finance from banks, which again makes them vulnerable to private moneylenders. Why have outstanding farm loans gone up in Maharashtra? Anil Ghanwat, leader of the farm union Shetkari Sanghatana, blamed central government policies for farmers being unable to make the most from their fields. 'Since 2019, restrictions have been brought in in the form of export bans. Limiting the amount that traders can hold has had a negative effect on most major commodities like wheat, onion, soyabean pulses,' he said. Cost of production, Ghanwat said, has been on the rise. 'Thus farmers have been unable to make ends meet,' he said. Soyabean, which is grown over 40 lakh hectares, has been trading well below its government declared Minimum Support Price (MSP) since 2021. This was mostly because of easy import of edible oil due to the slashing of import duties. The same was raised in 2024, but a bumper crop failed to see any appreciation in prices. In the case of onion, export ban and continuous clamping on trade to ensure low retail prices resulted in lower prices for farmers. The export ban was recently removed but prices are still low. Similarly, cotton, another important kharif crop, has been trading below its MSP over the last two seasons. Both cotton and soyabean contribute to over 80 lakh hectares out of the 1.20 crore hectares sown during kharif season. Meanwhile, on the input side, the prices of fertiliser complexes (fertilisers which contain all the three primary nutrients viz Nitrogen, Phosphate and Potassium) have seen a sharp rise. Yuvraj Patil, a farmer from Nanded district, pointed out that the most commonly used complex 10:26:26 (phosphorus and potassium present in 1:1 quantity) is trading at Rs 1,700 per bag of 50 kg each. 'Last year, the price of this fertiliser, which is widely used in almost all crops, was Rs 1,470,' he said. Labour is another pain point for farmers, especially for cotton and soyabean growers who have to depend on manual labour for most of their work. At present, a male labour charges between Rs 400-500/day while a female labourer can be hired at the rate of Rs 300-350/day. 'For the last season, harvesting cost for soyabean per acre was Rs 3,500 — a sharp rise from Rs 2,000 which was the rate for the season of 2023-24,' he said. Overall labour costs have increased by 10-15 per cent on a year on year basis. Former MP and farm leader Raju Shetti claimed the previous loan waivers had failed to make any difference to farmers. 'When Uddhav Thackeray was the chief minister, he announced a loan waiver of Rs 20,000 crore, but given the stringent conditions to be a beneficiary, not much relief was felt on the ground,' he said. Shetti said the present rise in outstanding loans is mostly due to increased prices of insecticides, pesticides and fertilisers. Maharashtra and loan waivers: a brief history In 2019, the Uddhav Thackeray-led Maha Vikas Aghadi (MVA) announced a blanket waiver of outstanding loans upto Rs 2 lakh. This scheme was not for people in government services, elected members of the state legislature and Parliament, and those who file income tax returns. As of December 31, 2020, 29 lakh farmers had benefited from the scheme with bad debt of Rs 21,991 crore being waived. In June 2017, the then chief minister Devendra Fadnavis had announced a waiver of Rs 34,000 crore to alleviate farm distress. Ghanwant said Maharashtra is one of the few states where loan waivers have been pushed by the political leadership. 'Unfortunately, this has seen farmers default willfully in the hope of waivers. Even before the 2024 state elections, there were talks of a waiver. Bad credit is a combination of both political support and farm distress,' he said.
