ITC joins big league in Punjab agro projects

After making a foray into Madhya Pradesh, ITC is now exploring the interiors of Punjab. The firm will market vegetables under the ITC brand name.

The company has engaged 100 farmers in the district of Malerkotla to grow vegetables like cabbage, sweet peas, and tomatoes.

To begin with, ITC will supply branded vegetables door to door in Chandigarh in a traditional way through company-operated carts.

According to company officials, it will be a win-win situation for farmers and ITC. "Farmers do not have the facilities to store perishables and the nearest market from Malerkotla is in Ludhiana. They will benefit from this. A farmer growing conventional crops like paddy and wheat can earn up to ten times more if he grows off-season vegetables," an executive said.

As the farmers get backward and forward linkages under the contract with the firm, it saves time, which is spent in purchasing inputs and disposing of output, which many of them utilise in other vocations like dairy farming.

The companies also profit from such arrangements as they get an assured output of desirable quality from the farmers, compatible with their requirements.

ITC has proposed a tie-up with State Bank of Patiala to provide financial assistance to the farmers. Malerkotla is the traditional vegetable-growing belt of Punjab and the availability of large number of small and marginal farmers in that pocket makes it viable for the corporate to undertake the project there.

The Bharti Group has started the cultivation of fresh vegetables at Laddowal near Ludhiana in its model farm for export and is expected to expand its operations.

Reliance has also signed a deal with the Punjab government to executive its 'Field to Fork' project. If all the companies fulfil their promises, there would be a metamorphosis of Punjab's agriculture.