PepsiCo India continues to strengthen its partnerships with farmers across the country to boost their productivity and income. The plan is to strengthen farmer connect from 21,000 in 2009 to 50,000 by 2012.
Helping farmers improve yield and income
The company's vision is to create a cost-effective, localized agri supply chain for its business by:
- Strengthening farmer connect from 21,000 in 2009 to 50,000 by 2012.
- Building PepsiCo's stature as a development partner by helping farmer grow more and earn more.
- Introduction of new high yielding varieties of Potato, Oats, Citrus and others.
- Introduction of sustainable farming methods and contract farming.
- Making world class agricultural practices available to farmers.
- Working closely with farmers and state governments to improve agri sustainability, crop diversification and enhance farmer incomes.
- Helping farmers refine their farming techniques and raise farm productivity.
- Customized solutions to suit specific geographies and locations.
- Facilitate financial and insurance services so as to de-risk farming.
High Quality Seed Program
In order to provide its farmers “The best quality potato seeds”, PepsiCo collaborated with the Thapar Institute of Technology to develop quality potato mini-tubers.
PepsiCo has also made an investment in a world class potato mini-tuber facility at Zahura in Punjab which would help getting robust and disease-free seeds to its contract farmers. The facility would be operational by the end of 2009.
- Contract Farming
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Partner In Progress Model
PepsiCo has pioneered the concept of contract farming under which the company transfers agricultural best practices and technology and procures the produce at a pre-agreed price.
- A 27-acre research and demonstration farm was set up in Punjab to support the initiative to conduct farm trials of new varieties of potato, chilli, corn, peanut and other crops.
- PepsiCo India's technical team implemented a high quality seed programme to deliver early generation and disease-free seeds to farmers.
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- Potato Farming
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The Impact - World class, top quality, high-yielding potato varieties introduced.
- High yielding potato seeds have enabled farmers to produce world class potatoes and procure higher returns.
- PepsiCo India has partnered with more than 11,000 farmers working across Punjab, U.P., Karnataka, Bihar, West Bengal, Gujarat and Maharashtra for the supply of world class chip-grade potatoes.
- Partnered with State Bank of India to get soft loans to all its contract farmers to reduce their cost of cultivation and save them from the clutches of money lenders (higher interest rates).
PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie-up with the United Breweries Group. |
- PepsiCo Citrus Project
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The PepsiCo and PAGREXCO (Punjab Agri Export Corporation) partnered to start a Citrus Development initiative in 2002, marked a step forward in PepsiCo's commitment to diversification of agriculture and improvement in quality of life for farmers. The Impact - Initiative has emerged as one of the most successful models of public-private partnerships in Indian agri-business and would create a localized supply base for citrus juice for Tropicana business.
- Project played a significant role in introducing a less water intensive alternative to crops such as paddy.
- Today, farmers can choose from 16 varieties of rootstock and 34 varieties of citrus, largest collection at a commercial nursery.
- Technical support and expertise were extended to the Punjab Government to set up two fruit processing plants in Hoshiarpur and Abohar - prime citrus growing areas in Punjab.
- Each plant is capable of processing multiple fruits and capable of acting as a catalyst for farmers to adopt horticulture.
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