Economics of Grape Wine Production in Maharashtra

Maharashtra has 58 grape winery units and grape wine production is 2.11 crore litres per annum. About 32 winery units were selected for present study. The concept of variable cost and fixed cost was used for determining production cost in the firm. Data were pertained to the year 2009-10. The results revealed that investment was found to be Rs.13005392.75 in fermentation tank, pneumatic press with volumetric pump and insulation tank with sliding were predominant items of investment. Total cost was Rs.19103501.72 in which share of variable cost was 68.81 per cent followed by that of fixed cost (30.19 per cent). Grape wine production was 191590.63 liters. Net profit was Rs.9017996.20 per annum. Per liter cost of production of grape wine was found to be Rs.52.11.