Global beverages and snacks major PepsiCo is looking forward to enhance potato procurement through its tie up with farmers by around 20–65% in India in the next 5 years. The company aims to strengthen regions where it is already working with the farmers and also entering new geographies in the country.
PepsiCo, which works with around 24,000 farmers across nine states under collaborative farming model, procures around 45% of its current total requirement of 2.40 lakh tonnes of potato per annum by working with farmers and the rest 55% from the open market. ‘We expect the share of potato procurement through the collaborative farming to go up to around 65% from the current 45% in the next 5 years’, PepsiCo India senior director-operations (Foods) Rajiv Wakhle told PTI here. He added that the company is looking to strengthen the existing regions where it is working with farmers and is also eyeing entering new geographies in the next few years.
PepsiCo India currently works with farmers across various states including Punjab, Maharashtra and West Bengal, to procure agro-products from them. It utilises potatoes for various brands under food business like Lay's and Uncle Chips.
Under its collaborative farming programme, the company provides technical and financial support to farmers, which includes tie-up with banks and insurance firms. The firm assures buy back of the farm produce at pre-agreed prices from cultivators, thus helping them insulate from market price fluctuations besides ensuring stable income.
The company works with farmers throughout the crop lifecycle and this includes the supply of planting material, offering plant protection programme and assistance in securing soft loans under collaborative farming model, he added.
PepsiCo, which works with around 24,000 farmers across nine states under collaborative farming model, procures around 45% of its current total requirement of 2.40 lakh tonnes of potato per annum by working with farmers and the rest 55% from the open market. ‘We expect the share of potato procurement through the collaborative farming to go up to around 65% from the current 45% in the next 5 years’, PepsiCo India senior director-operations (Foods) Rajiv Wakhle told PTI here. He added that the company is looking to strengthen the existing regions where it is working with farmers and is also eyeing entering new geographies in the next few years.
PepsiCo India currently works with farmers across various states including Punjab, Maharashtra and West Bengal, to procure agro-products from them. It utilises potatoes for various brands under food business like Lay's and Uncle Chips.
Under its collaborative farming programme, the company provides technical and financial support to farmers, which includes tie-up with banks and insurance firms. The firm assures buy back of the farm produce at pre-agreed prices from cultivators, thus helping them insulate from market price fluctuations besides ensuring stable income.
The company works with farmers throughout the crop lifecycle and this includes the supply of planting material, offering plant protection programme and assistance in securing soft loans under collaborative farming model, he added.
