February 28, 2021

ITC units sights on contract farming

NEW DELHI: ITC is planning to create export-oriented fruit and greens clusters, grabbing the alternatives created by not too long ago introduced agricultural reforms, akin to permitting contract farming and the anticipated change in world buying patterns.

ITC’s enterprise head for agriculture and data expertise S Sivakumar stated worldwide patrons have been diversifying their sources of provide within the wake of the pandemic. “For instance, the Center East international locations will probably be eager to obtain vegetables and fruit from numerous sources, each contemporary and in addition to processed merchandise,” he stated.

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The corporate plans fruit and vegetable clusters nearer to the ports to create logistics infrastructure for exports. Sivakumar stated the corporate is exploring varied choices in view of the agricultural reforms introduced by the federal government. It hopes to make use of contract farming and contain farmer producer organisations (FPOs), which the federal government is actively selling.

Sivakumar stated larger client consciousness about meals security and hygiene within the home market will encourage funding at farms, improved provide chains and remunerative costs to farmers.

To start with, ITC is planning three clusters in six to seven months in varied elements of the nation. The corporate is already in talks with clients and constructing the availability chain to export to Europe, the US and the Center East.

The federal government not too long ago authorised three ordinances to reform agriculture.

Legalising company farming—The Farmers (Empowerment and Safety) Settlement on Worth Assurance and Farm Providers Ordinance 2020—is predicted to supply for a nationwide framework on farming agreements that protects and empowers farmers to interact with agri- enterprise companies.

Additional, the modification to the Important Commodities Act will take away the prevailing restrictions on stocking meals produce. The Farmers’ Produce Commerce and Commerce (Promotion & Facilitation) Ordinance 2020 allowed farmers and merchants to promote and buy via aggressive different buying and selling channels.

“Horticulture crops like onions, tomatoes and potatoes, all of those had the inventory restrict below the Important Commodity Act. Now, with the modification, we are able to additionally discover creating these clusters and put in investments,” he stated.

Aside from contemporary vegetables and fruit exports, ITC additionally expects wheat and rice exports to select up.