Partnership with farmers
Over the last 25 years, PepsiCo India has been combining deep insights into Indian farming with its global technological expertise to transform the lives of farmers.
PepsiCo India established a model of partnership with farmers and currently works with over 24,000 happy farmers across nine states through the crop lifecycle by providing new varieties, technologies and sustainable farming practices. In PepsiCo, farmers truly have a friend and development partner. The association with PepsiCo India has not only raised the incomes of small and marginal farmers, but also their social standing.
Helping Farmers Improve Yield and Income
The company’s vision is to create a cost-effective, localized agri-supply chain for its business by:
Building PepsiCo’s stature as a development partner by helping farmers grow more and earn more.
- Introducing new high-yielding varieties of potato and other edibles.
- Introducing sustainable farming methods and practising collaborative farming.
- Making world-class agricultural practices available to farmers and helping them raise farm productivity.
- Working closely with farmers and state governments to improve agri-sustainability and crop diversification.
- Providing customized solutions to suit specific geographies and locations.
- Facilitating financial and insurance services in order to de-risk farming.
Collaborative Farming – Potato
PepsiCo’s 360-degree farmer connect program has transformed the lives of small and marginal farmers across India.
PepsiCo India was the first corporate to introduce collaborative farming of process-grade potatoes in India in 2004-05. PepsiCo presently works with farmers, spread across West Bengal, Maharashtra, Punjab, Gujarat, UP, Karnataka, Bihar, Haryana and Chattisgarh. More than 45 percent of these are small and marginal farmers with a land holding of one acre or less. PepsiCo India has helped improve their incomes through a 360-degree farmer connect program that includes:
- Assured buy-back of produce at pre-agreed prices, which insulates farmers from open market price fluctuations.
- Supply of high quality planting material, including its proprietary advanced seed varieties.
- Offering advanced plant protection program and technical know-how developed in collaboration with leading agri-input companies like DuPont, Bayer and BASF.
- Soft loans through a national level tie-up with State Bank of India.
- Facilitation of crop/weather risk insurance in partnership with leading insurance companies to protect farm incomes.
Direct Seeding of Rice
PepsiCo India is leading a pioneering initiative to replace transplanting of paddy with direct seeding technology, which has helped reduce water consumption in paddy cultivation by 30 percent and has also cut down greenhouse gas emissions by 75 percent. Besides this, the technique also helps reduce labour costs thereby significantly reducing cost of cultivation. The results have been vetted by leading research institutes like the Indian Agriculture Research Institute (IARI) and the International Rice Research Institute (IRRI). Punjab Agriculture University (PAU) has also included this technique in their package of practices and recommendations, based on their own findings and PepsiCo's results.
PepsiCo is also helping farmers in water-scarce areas in Maharashtra, Gujarat, Karnataka and Haryana and promoting drip irrigation in over 3000 acres. PepsiCo’s initiatives include:
- Helping raise money for the assets through banks.
- Incentivizing the farmers for the adoption of drip irrigation through a buy-back mechanism.
- Providing help to design agricultural equipment to make drip irrigation commercially viable for farmers