PepsiCo India contract farmers in West Bengal has recorded a growth of 50 per cent in its potato crop this year in acreage and 100 per cent in crop output, leading to record farm income.
This growth has also resulted in the farmers receiving a profit between Rs 20,000 and Rs 40,000 per acre compared to Rs 10,000 – Rs 20,000 per acre last year.
PepsiCo India runs works with nearly 12,000 farmers and procure 70,000 to 75,000 tonnes of potatoes.
According to a release by Pepsico, the record growth in West Bengal could be attributed to the prompt intervention by the PepsiCo agri team which offered its 6,500 contract farmers the knowledge of the correct geometry and chemical kit required for optimal harvesting.
The PepsiCo team also provided better quality seeds and ensured timely agricultural inputs by maintaining day to day follow-ups on all relevant agricultural practices.
Nishchint Bhatia, executive vice-president agro, PepsiCo India, said that a unique feature introduced by Frito-Lay India is the ‘crop insurance’ offered to the farmers.
It also guarantees a ‘buy back’ price for the farmers which insures a regular income for them.
Like in 2010, where other farmers in West Bengal are facing big issues of glut in the market place and prices fetched did not even meet cost of cultivation sometimes, partnership with PepsiCo ensures steady income stream for farmers.
PepsiCo also attributes the success of its contract farming initiative to partnership with local agencies to ensure transfer of technology through trained employees, supply of relevant agricultural implements free of cost to its contract farmers, supply of timely and quality farm inputs on credit, prompt dispatch, delivery and procurement of the produce, effective use of modern communication technology and maintenance of perfect logistics and global marketing.
