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.
PepsiCo Makes in India for India
- 100% of our products are made in 62 Beverage and Food plants in India
- Over 65% of Tropicana’s requirement for fruit pulp is sourced from the best of Indian orchards
- 100% of the potato for making Lay’s and Uncle Chipps is from India
- We also source Corn for our Doritos range of snacks from Bihar
Helping Farmers Improve Yield and Income
The company’s vision is to create a cost-effective, localized agri-supply chain for its business by:
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
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
PepsiCo’s initiatives to build a Citrus ecosystem in India
PepsiCo India has partnered with the Government of Maharashtra towards developing the Citrus ecosystem in the state.
This includes investments in a citrus facility in Nanded as well as partnering with citrus farmers to improve their
productivity through various agri interventions. Given that India does not have processing capacity and hence
packaged juice grade varieties of lime/lemon, we together with a partner-Citrus Processing India Limited (CPIL) have
invested in a citrus-processing facility at Nanded.
Over 65% of PepsiCo India’s fruit pulp requirement comes from Indian orchards. Of these, pulp for 5 fruits- Banana,
Guava, Pomegranate, Mosambi and Mango is 100% from Indian orchards. The opening of the CPIL facility in 2015, has
given a fillip to the Company’s local sourcing footprint for lime/lemon, mosambi and orange. Since the opening of
the facility, we have rolled out the first ever Packaged Mosambi juice in India under our Tropicana brand in early
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