L.B.KunnalB.S.Naveen2016-11-022016-11-022009http://krishikosh.egranth.ac.in/handle/1/83482The area under wine grapes in Bijapur district is increasing over the years. Since there is no proper farm business data on its cost of production, the study on economics of production and value addition to wine grapes was conducted in Bijapur district of Karnataka. Primary data was collected from 60 wine grape growers spread over in the district. In addition, to study the value addition in wine grapes a case study approach was followed by selecting winery existing in Bijapur town. For analysis of data tabular presentation method and financial analysis were adopted. The per hectare total cost of establishment was Rs. 3,94,377.44. The total maintenance cost during bearing period was Rs. 1, 86,043.25. The average yield of wine grape orchard was 14.00 tonnes per hectare per year and average returns were Rs. 5,29,787. Financial feasibility analysis showed that, NPV for wine grape orchards was Rs. 16,59,443.32 per hectare at 9.5 per cent discount rate. The BC ratio at 9.5 per cent discount rate was 2.2, the payback period was about 3.20 years and the IRR was found to be 44.77 per cent. The investment in wine grape orchard was found to be financially feasible. The total cost of establishment of winery was Rs. 641.89 lakhs. Winery produces 400500 litres of wine every year and average maintenance cost was Rs.1174.86 lakhs and average annual returns were Rs. 2295.90 lakhs. In the winery NPV was 6286.27 lakhs, the BCR was 2.5, PBP was 1.4 years and the IRR was 96.00 per cent, thus indicating the feasibility of investment in winery. Opinion survey was conducted to know the problems in the production of wine grapes and wine. High initial investment cost and high cost of labour were the major problems in production of wine grapes. Similarly, marketing of wine and high excise duties were the major problems in winery.Agricultural EconomicsThesis