Delhi firm to procure 5,000 tonne onion in Feb-May

New Delhi-based Global AgriSystem (GASPL) will procure 5,000 tonne of unhal onions from onion growers in Dindori taluk of Nashik district during February-May this year.

GASPL has signed a memorandum of understanding with the Dindori Agriculture Produce Market Committee (APMC) for the procurement. The company will, accordingly, sign contracts with the Dindori onion growers soon.

The company and the Dindori APMC have also fixed the guarantee prices of Rs 280 to Rs 290 a quintal. Significantly for onion growers, they will be allowed to sell their product anywhere in case the market prices are more than the guarantee prices.

A senior GASPL official said, "This is our first pilot project. We will produce onions through contract farming for the single large exporter. Initially, we have set the target of procuring 5,000-7,000 tonne of unhal onions. We will increase the procurement target by 20-30 per cent every year, if our pilot project becomes successful."

The official did not divulge the name of the exporting company for which it will produce onions through contract farming.

Global AgriSystem is one of the largest agri business companies in the country with focus on the agriculture and food sectors. The company started its Indian operations as Cebeco India Pvt Ltd in 1998 as a joint venture with the Royal Cebeco Group Co-operative of the Netherlands.

Its name was changed to Global AgriSystem Pvt Ltd in June 2003 in view of its changed role and ownership.