Ludhiana, July 24, 2008: Strengthening its commitment of Partnership with farmers, PepsiCo India today handed over Rs. 17.67 lakh as weather insurance to the farmers of Amloh, Fatehgarh Sahib district in Punjab. Facilitation of Weather Insurance by PepsiCo India is a pioneering initiative by the company that aims to empower the contract farmers to deal with any kind of weather changes. Through the initiative, today PepsiCo India has reached out to 145 farmers and has covered an area of 915 acres in Punjab alone.
Speaking at the occasion, Nishchint Bhatia, Executive Vice-President, PepsiCo India said, "PepsiCo India has a legacy in supporting agriculture. Over the years, it has been working in close partnership with the farming community with a vision of creating a cost-effective, localized agro-base in India by leveraging its access to world class agricultural practices. In our attempt to derisk the farmers we have partnered with ICICI Lombard and have developed the weather insurance cover for the contract farmers in India."
He further added, "Our main objective behind the weather insurance is to make the agricultural and rural sector economically prosperous and financially secure by providing a safety net in time of a natural calamity due to environmental changes."
Weather conditions in Punjab have always created some nuances in the lives of the farmers, particularly potato farmers. Many a times the severe cold conditions have ruined their cultivation leading to huge losses. 2008 also experienced one of the most severe frost which had an adverse impact on potato yields.
PepsiCo's program endeavors to deliver continuous benefits to all its contract farmers. In addition to advanced chemical packages, agronomy support and best in class seeds, this year's new initiative is aimed at providing relief to its farming community against harsh weather conditions leading to frost. PepsiCo India in tie up with 'Weather Risk', which has a tie up with ICICI Lombard Insurance reached out to the farmers and educated them the need of such an insurance for potato cultivation.
With an aim to provide complete assistance and support to its Contract farmers, PepsiCo India also helped the farmers in paying their insurance premium by giving them an additional amount Rs. 0.15 per kg on the buy back rate of potato tubers. This amount covered approx. 50% of insurance premium.
Under this unique initiative PepsiCo has provided insurance cover to 42 farmers covering 220 acres in Jagraon, 36 in Amloh covering 235 acres, 13 farmers in Rampura Phul covering 145 acres and 54 in Nabha covering 314 acres in Punjab. A total of 145 farmers covering 915 acres are benefitting to the tune of 33 lac rupees.
PepsiCo (NYSE: PEP) is one of the world's largest food and beverage company, with 2007 annual revenues of more than $39 billion. The Company employs approximately 185,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 17 brands that generate $1 billion or more each in annual retail sales.
PepsiCo entered India in 1989 and has grown to become the country's largest selling food and beverage company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. The group has built an expansive beverage, snack food and exports business and to support the operations are the group's 37 bottling plants in India, of which 16 are company owned and 21 are franchisee owned. In addition to this, PepsiCo's Frito Lay snack division has 3 state of the art plants. PepsiCo's business is based on its sustainability vision of making tomorrow better than today. PepsiCo India's commitment to living by this vision every day is visible in its contribution to the country, consumers, farmers and people.
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Mrinall Kanti Dey
GM- Corporate Communication