Set up in 1967, Indian Farmers Fertiliser Cooperative Ltd (Iffco) has become one of the world’s largest. The equity capital of Rs 6 lakh contributed by cooperatives in 1967 had risen to Rs 426 crore in 2010-11. U S Awasthi, managing director, talks of the sector and the company’s plans with Vijay C Roy. Edited excerpts:
What reforms do you suggest to make agriculture remunerative for farmers?
Farmers are not getting (an appropriate) price for their crop. State mandis and commission agents’ activities are anti-farmer. They (farmers) can’t sell their crop beyond their state. They should have the right to sell their crop anywhere in India, depending on where the price is highest.
The produce should not be restricted to a particular mandi. Commission agents should be discarded from the system, as it is they who make the larger chunk of money, not the farmers.
What should be done to promote agri processing?
Food processing is not coming in as nobody wants to invest in agriculture. There should be interaction between agri farmers and industry. We should encourage people to invest in food processing. Where it had been tried, it has not been a success. The government should find the reason and should come up with clear plans.
To what extent has the dollar’s appreciation affected the price of imported fertiliser?
The dollar has appreciated about 10 per cent in five months, from Rs 45 to Rs 50. The appreciation has led to a hike of Rs 3,500 a tonne in the price of imported DAP fertiliser. We are passing the impact on to farmers. We’d be importing six million tonnes of DAP in the current financial year, as compared to eight mt last year.
What is this ‘Vision 2015’ plan you’ve embarked on?
We plan to achieve a production/marketing target of 15 mt per annum, with an annual turnover of Rs 30,000 crore. Our current production capacity is 8.58 mt and our turnover during 2010-11 was Rs 21,195 crore. Further, we have plans to diversify into other profitable businesses, to maximise returns to our shareholders.
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What is the status of Iffco Chhattisgarh Power Ltd (ICPL), which you incorporated to foray into the power sector?
Iffco holds 74 per cent in ICPL, which is implementing a 1,320-Mw power project in Surguja district. Coal will be supplied from dedicated mines (Tara block) close to the site. The ministry of environment and forests has accorded Stage-I forest clearance to the Tara coal block. Land acquisition is complete. Other statutory clearances, the water allocation and power purchase agreement are in place. The debt syndication has been tied up through Industrial Development Bank of India. The project is expected to achieve commercial production by mid-2015.
What is the status of your Kisan SEZ?
Iffco is developing an agro-based special economic zone, the Kisan SEZ, in Nellore, Andhra Pradesh, through its wholly owned subsidiary, Iffco Kisan SEZ Ltd, with primary focus on food processing and agri-based industries. It is being set up on 2,500 acres owned by Iffco.
All state government clearances have been obtained, as has that from the Union ministry of environment and forests. An integrated dairy farm is also proposed to be set up in collaboration with internationally renowned companies. Project proposals have been received on poultry farming, logistics infrastructure and storages, vegetable & fruit processing, agri-implements, seed processing units and an educational institute with hospital.
